Bitcoin has been held by Coinbase on its balance sheets since the year 2012
American exchange is giving out assistance and advice to other private and publicly traded firms that want to secure digital assets in their treasuries.
The United States-based crypto exchange Coinbase has unveiled that Bitcoin and other cryptocurrency assets have been a key element of its corporate treasury since the company's founding back in the year 2012.
In the new announcement addressed to other corporate actors, the exchange offered its own experience in managing its treasury position in cryptos as a secure foundation for advising other private and publicly traded companies regarding how to deal with their prospective investments.
In the newly published, and very detailed Corporate Treasury FAQ, the exchange presents a thorough overview of the kinds of accounting, investment, and tax policies that companies would want to consider and embrace if they wish to broaden their treasuries into cryptocurrency.
The FAQ is both a comprehensive resource that covers all manner of auditory, regulatory, investment questions, and technical about cryptocurrency from a corporate investment viewpoint and a pitch for companies to determine Coinbase in particular as consultant, trade execution, and professional care partner.
This document also gives an overview of Bitcoin's performance in current years from a macro viewpoint, revealing its favorable comparison to other financial assets like gold and the S&P 500. "Bitcoin’s strong positive performance paid investors for its volatility," the exchange notes. The Risk-adjusted, asset had a rolling annualized Sharpe Ratio of about 1.52 over the earlier five years, taking into account the 2018 bear market.
Corporate investment in cryptos, distinctly Bitcoin, has made headlines in current weeks due to Tesla's $1.5 billion investment in the asset, which resulted in rumored profits of up to $1 billion. Notwithstanding this remarkable windfall, analysts have said that while they await a ripple effect among corporations following Tesla's move, less than 5% of publicly traded firms are likely to be bold enough to invest at present, until there is more regulative clarity.
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