Why Coinbase Sold 12,652 ETH (Approximately $25 Million) in Q4 2024

One of the largest cryptocurrency exchanges, Coinbase, sold 12,652 ETH (approximately $25 million at the current price) in the fourth quarter of 2024

Coinbase (NASDAQ:COIN) sold 12,652 ETH (about $25 million at current prices) in the fourth quarter of 2024, when the company’s valuation was nearly double its current level, according to a new report by Global Head of Digital Asset Research at Standard Chartered Bank (NYSE:SCB) Geoffrey Kendrick.

As we previously reported, Coinbase (NASDAQ:COIN) disclosed selling some of its ether to fund operations, without specifying the amounts involved, and denied allegations that it regularly engages in trading activities.

“Base earns ETH from sequencer fees, and the ETH we earn is mainly held for long-term investment or used for operational expenses, including tax liabilities and reinvestment in growth through things like salaries, grants, acquisitions, and funding for public goods,” a Coinbase spokesperson said.

According to Kendrick’s calculations, Coinbase’s net ETH sales over the last three quarters equal 1,558 units, suggesting a strategy of selling in portions rather than accumulating over the long term. However, Coinbase stated that its ETH holdings for investment purposes had increased by 20% over the entire year 2024.

While Coinbase claims these sales were mainly to finance its activities, it begs the question of what its crypto asset management strategy is. Binance was subject to similar accusations earlier this year, in January and February.

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It is also worth mentioning that Coinbase is a leading staker of ETH, as highlighted in their latest report. The exchange contributes around 11.35% of the total staked ETH, making it a major player in the Ethereum ecosystem.