Coinbase amasses a $4B war chest so it can outlast ‘crypto winter’

Coinbase, the largest American cryptocurrency exchange, has stockpiled a war chest worth about $4 billion in cash in preparation for decreased crypto retail trading volumes and higher operating costs brought on by regulatory hurdles. It reportedly expects to use the cash to cover costs incurred by a variety of factors, including conforming to new regulations handed down by the United States legislature. Coinbase CFO, Alesia Haas, told the Wall Street Journal that no one single danger to the exchange or the industry had compelled the exchange to build its cash reserves, but that it was best to be prepared for the worst while times are good. The company has conducted stress tests to ensure it can meet the costs of compliance, cyber attacks or possible trading declines.