Coinbase has revealed that it has amassed $4 billion in cash, which it plans to utilize in the case of governmental scrutiny, crypto industry dangers, and the likelihood of a long bear market.
In an interview with the Wall Street Journal, Coinbase CFO Alesia Hass stated that the business is completely prepared for any unfavorable scenario, such as potential cyber-attacks, significantly tighter regulations, or even a drop in trading that would accompany a crypto bear market. Hass stated:
The question is how far $4 billion would go if the Securities and Exchange Commission (SEC) decided to take crypto seriously. Something it has already stated its intention to do.
Coinbase stated in a letter to shareholders:
Coinbase‘s net profit for the second quarter of this year was $1.6 million, up 4900 percent over the same quarter the previous year. Cathie Wood’s highly successful Ark Invest has continued to support Coinbase, buying up shares whenever there is a dip.
If the bitcoin market maintains its bullish path, Coinbase will almost certainly follow suit. Coinbase‘s cash stockpile, on the other hand, will be extremely valuable if governments and authorities can exert enough negative pressure on the sector.