Czech Central Bank Buys $20 Million Worth of Coinbase Shares

The Czech National Bank has made its first investment in a cryptocurrency company by purchasing 51,732 shares of the Coinbase exchange.

At the time of purchase, the shares were valued at $18.13 million. However, their price later rose to $387.06 per share, increasing the total value to $20 million.

According to Google Finance, Coinbase Global shares have gained 55.88% since the beginning of the year.

The investment in the crypto exchange aligns with the Czech Central Bank’s new strategy of exploring “the possibility of bridging the gap between traditional finance and cryptocurrencies.”

Earlier this year, the Governor of the Czech National Bank, Aleš Michl, expressed his intention to invest in Bitcoin, potentially allocating up to 5% of the bank’s reserves into digital assets. If approved, the central bank could invest up to €140 billion in the flagship cryptocurrency.

According to Michl, buying BTC would help diversify the bank’s assets. However, other board members opposed the idea. Board member Jan Kubíček cited Bitcoin’s extreme volatility, claiming it makes BTC an unattractive asset for the central bank.

So far, the Czech Central Bank has not made a final decision on the proposal, but officials are already considering Bitcoin as a new asset class.

See also: "Reuters: Crypto exchanges made over $172 million on TRUMP memecoin"

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