# Coinbase Pump | Weekly Recap

*Author: Ryan Sean Adams*
*Published: Aug 21, 2021*
*Source: https://www.bankless.com/coinbase-pump-weekly-recap*

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Dear Bankless Nation,

Coinbase is buying more crypto.

Brian Armstrong [announced board approval](https://twitter.com/brian_armstrong/status/1428489591665856512?s=20) 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.

![](https://storage.ghost.io/c/e4/b7/e4b77544-5a37-4f0b-8824-8440aa348476/content/images/public/images/3b58588b-578d-4bdf-8a57-b5bca67bc753_771x146.png)According to their [quarterly report](https://bankless.ghost.io/content/files/CIK-0001679788/dcec079b-3237-4ae0-a54d-479ded972ab8.pdf), 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.

![](https://storage.ghost.io/c/e4/b7/e4b77544-5a37-4f0b-8824-8440aa348476/content/images/public/images/0e4f2803-9f5a-47e1-a17a-32b1b510aa6f_799x577.png)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](https://blog.coinbase.com/coinbase-updates-investment-policy-to-increase-investments-in-crypto-assets-a68c752ea786)…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](https://twitter.com/twobitidiot) 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](https://twitter.com/ZeePrimeCap) explain their thesis on [Olympus DAO](https://bankless.ghost.io/wtf-is-olympus-dao/)
Enjoy the weekend.

- RSA

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#### **ACTION RECAP **📚
- Execute any good market opportunities you saw in [Market Monday](https://bankless.ghost.io/nfts-defi-market-monday/)
- Automated [your Uniswap V3 liquidity](https://bankless.ghost.io/how-to-automate-uniswap-v3-liquidity/)
- Learn [how Ethereum is fixing single sign-in](https://bankless.ghost.io/sign-in-with-ethereum/)  🔥
- Evaluate [DeFi tokens with the same framework VCs use](https://bankless.ghost.io/how-to-value-defi-tokens/)
- Ask [your crypto question that you’ve been too afraid to ask](https://bankless.ghost.io/what-crypto-question-have-you-been)