Coinbase (Coin) sold 12,652 Ether ($ 25 million at the current price) in the fourth quarter, as it was appreciated about double the level now, according to Geoffrey Kendrick, the global head of digital activation research in Standard Chartered Bank.
In a note, Kendrick said he analyzed Crypto Exchange’s quarterly archives showing that it holds ether (ETH) under different categories, including investments and operational purposes. He estimates that approx. 80% of revenue generated by base, Coinbase’s Ethereum Layer-2 blockchain, is a profit.
Remarkably, the time of the company’s trades is in line with price movements, he said. Coinbase Net purchased in the third quarter when ETH traded around $ 2,500 and Netto sold in the fourth when the second largest cryptocurrency reached $ 4,000. It is now about $ 2,000.
“The fact that the Net bought in the 3rd quarter (when prices were low on average) and net sold in the 4th quarter (higher average prices) tells me that Coinbase acts as any risk -adjusting profit that Maximiser would do,” Kendrick wrote.
Coinbase said it sold some ether to finance operations without saying how much was involved.
“Basis earns ETH from Sequencer fees, and ETH, we earn, are primarily kept for long -term investments or used for operating expenses, including tax obligations and reinvestment in growth through things such as wages, grants, acquisitions and financing of public goods,” a spokesman said in an E email.
According to Kendrick’s calculations, the net -a -sale in the last three quarters amounted to 1,558, which involves a pattern of strategic sales rather than accumulation. He reached his conclusion by subtracting Base’s profits in ETH from changes in Coinbases Eth Holdings.
The spokesman reiterated that the company generally does not participate in trading activities.
“As shared in our 10K: ‘Crypto assets held for investment are held primarily in the long term … We do not participate in regular trade in these assets, but can borrow them through primary financing or spell them.’ Our ETH kept for investments rose 20% by 2024, “the spokesman said.
This is not the first time Coinbase has had to answer suggestions, it sells ether that is generated by base. Last month, a member of the base rejected speculation about potentially ETH sales who said the exchange had “accumulated $ 300m+ in ETH, which is more than 2x the entire base ETH earnings over time.”
