Coinbase has held Bitcoin on its balance sheets since 2012

Altcoins

United States-based cryptocurrency exchange Coinbase has revealed that Bitcoin (BTC) and other crypto assets have been a key component of its corporate treasury since the company’s founding back in 2012. 

In a new announcement addressed to other corporate actors, the exchange presented its own experience in managing its treasury position in cryptocurrencies as a solid foundation for advising other private and publicly-traded companies about how to deal with their own prospective investments. 

In a newly-published, highly detailed Corporate Treasury FAQ, the exchange provides a thorough overview of the kinds of investment, accounting, and tax policies that companies would need to consider and adopt if they wish to diversify their treasuries into crypto. 

The FAQ is both a general resource that covers all manner of regulatory, auditory, technical and investment questions about crypto from a corporate investment perspective and a pitch for companies to choose Coinbase in particular as a trade execution, consultant and professional custody partner.

The document also provides overviews of Bitcoin’s performance in recent years from a macro perspective, revealing its favorable comparison to other financial assets such as gold and the S&P 500. “Bitcoin’s strong absolute performance compensated investors for its volatility,” the exchange notes. Risk-adjusted, the asset had a rolling annualized Sharpe Ratio of 1.52 over the past five years, taking into account the 2018 bear market.

Corporate investment in cryptocurrencies, notably Bitcoin, has made headlines in recent weeks due to Tesla’s $1.5 billion investment in the asset, which resulted in rumored profits of up to $1 billion. Notwithstanding this extraordinary windfall, analysts have said that while they expect a ripple effect among corporations following Tesla’s move, less than 5% of publicly traded firms are likely to be confident enough to invest at present, until there is more regulatory clarity.

Products You May Like

Articles You May Like

Australian Senators pushing for country to become the next crypto hub
How to modify or cancel a pending Ethereum transaction
Bulls target $100 Filecoin (FIL) after data points to improving fundamentals
Famed Brit photographer Platon’s NFTs have stars in their eyes
Inflation fears or ETF driving Bitcoin price? The Market Report is live with Big Cheds

Leave a Reply

Your email address will not be published. Required fields are marked *