Coinbase CFO says the firm has stockpiled billions to prepare for 'crypto winter': report

Startups • August 19, 2021, 10:41AM EDT
UPDATED: August 19, 2021, 2:36PM EDT
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Since its public market debut in April, crypto exchange giant Coinbase has stockpiled around $4 billion in cash to prepare for a possible regulatory crackdown or so-called crypto winter, the firm's chief financial officer told the Wall Street Journal. 

“We want to ensure that we maintain those cash reserves so that we can continue to invest and continue to grow our products and services in the event that we go into a crypto winter,” Alesia Haas said, referring to an extended drawdown in market activity. 

The reserves, which amounted to $4.36 billion as of June 30, could help the firm navigate potential regulatory risks brought on by Securities and Exchange Commission head Gary Gensler.

Gensler recently said that decentralized finance projects are not immune from regulatory oversight, the Journal reported Thursday. Coinbase facilitates trading in a number of decentralized finance coins, like Uniswap, Aave, and Sushi.

Coinbase's second quarter brought in more than $2.2 billion for the firm compared to just $186 million during the second quarter of the previous year. 

AUTHOR

Frank Chaparro profile picture Frank Chaparro

Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

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