Coinbase CFO says the firm has stockpiled billions to prepare for 'crypto winter': report
August 19, 2021, 10:41AM EDT
1 min read
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.