Coinbase Pump | Weekly Recap

The leading U.S. crypto exchange made a compelling announcement yesterday

Ryan Sean Adams

Aug 21, 2021

Bankless DAO’s NFT Showcase “Conscious Money” is live! Editions available for 0.05 ETH

Collect Crypto Culture

Dear Bankless Nation,

Coinbase is buying more crypto.

Brian Armstrong announced board approval of its massive crypto buy plan yesterday.

First, they’re purchasing $500m of crypto to add to their balance sheet.

Then, they’re investing 10% of future profits into crypto on an ongoing basis.

No one can ever accuse the crypto industry of not believing in its own assets.

Let’s dig into this.

According to their quarterly report, Coinbase holds $4.3B in cash. Ok…so the $500M crypto purchase is material, but nothing they can’t afford. I think the more interesting part is their commitment to allocate future profits towards crypto purchases.

According to their filings, Coinbase profit for Q2 was $1.6B. That would translate to $160M in crypto purchases for this quarter alone.

That said, Q2 was an explosive quarter for crypto as a whole, where ETH and BTC prices reached new ATHs. But to get a smoother picture of Coinbase potential crypto purchases, let’s look at revenue for the past six months. On an annualized basis this equates to about $4.7B in net income.

That’s means nearly $500M in crypto buybacks every year at their current run rate.

What do you think happens when crypto goes parabolic? Or when Coinbase’s revenues double, triple, or quadruple? More buying.

And what are they buying? Bitcoin, Ether, and DeFi tokens…that makes them the first publicly traded U.S. company to add all these to their balance sheet—not just Bitcoin.

Bitcoin, Ether, and DeFi.

Guys…this is just one company. BlockFi, Gemini, and other crypto companies are all gearing up for IPOs. What happens when they implement this system too?

And then…what happens when everyone else does?

Publicly traded companies are dollar-cost averaging into crypto.

Bullish.

Here’s what’s lined up for next week:

We talk to Ryan Selkis about how he become an ETH bull
Hayden Adams is coming onto State of the Nation
Ben’s diving into TokeMak and its mission to create sustainable liquidity
The guys at Zee Prime Capital explain their thesis on Olympus DAO

Enjoy the weekend.

- RSA

P.S. TracerDAO needs help! They’re building a new DeFi perpetuals protocols. Interested in helping build it? Join Discord to get involved.

🙏 Sponsor: Balancer—Earn $BAL back on trades when you swap tokens on Balancer.

Recap for the week of August 16th, 2021

METAVERSAL 🧙‍♂️

BANKLESS DAO 🏴

Weekly Subscriber Perks 🔥

Bankless Premium Members get access to perks like these:

Full Access: NFTs 🤝 DeFi
Exclusive: Debrief Episode for Institutional DeFi Infrastructure
Alpha Alert: SuperRare Airdrop

Launch your own raffle for Bankless Badge holders! Go ahead. We can’t stop you…

📺 State of the Nation

🎙️Listen to Podcast Episode | 📺 Watch the Episode

We’re now live streaming State of the Nation—join us at 2pm EST every Tuesday!

🗞️ Latest Weekly Rollup. Download the crypto meta to your brain in this weekly show.

Listen to podcast episode | iTunes | Spotify | YouTube | RSS Feed

Jobs opportunities 🧑‍💼

✨ See all listings on the Bankless Job Board✨

Go Bankless. $22 / mo. Includes archive access, Inner Circle & Badge—(pay w/ crypto)

🙏Thanks to our sponsor

Balancer

👉 Experience the future of liquidity. Get BAL back when you swap on Balancer.

Balancer is an automated portfolio manager and liquidity protocol allowing you to deposit capital and earn a passive income on your portfolio. With Asset Managers, Balancer V2 takes this idea to a new level by leveraging smart investing strategies to maximizes your APY at all times. Welcome to the future of programmable liquidity—earn, trade, and build new applications on Balancer V2. Check it out here.

Sponsorship paid for by Balancer Labs🚀

Tag Bankless on twitter and tell us how you’re going bankless for 3 x 🔥

Welcome to the bankless movement, Ryan. Early access to the podcast here. :)

Ryan Selkis @twobitidiot

I give the @BanklessHQ guys a lot of shit, but they are the top crypto podcast in the game right now, and actually helped move me more heavily into ETH before this year’s big rally. Excited for their next episode to drop on Monday! 😎

Want to get featured on Bankless? Send your article to submissions@banklesshq.com

Write for Bankless

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Bankless