Intel has revealed to investors that it owns a small stake in the cryptocurrency exchange Coinbase. This became known when the company filed the relevant documents with the US Securities and Exchange Commission (SEC).
Intel’s stake in Coinbase is really small, estimated at around $ 800,000 (3,014 shares). The company did not specify when these assets were acquired. This could have happened in April, when Coinbase went public, or at any other time after that point. Apparently, the purchase of shares was made for strategic purposes.
Buying other players’ assets is standard practice for tech companies. Such actions are taken either in order to ensure a strategic partnership, or for the sake of investment – in the hope that the value of shares will rise. Considering that the share of shares is small on the scale of both companies, it is logical to assume that we are talking about the first option.
This hypothesis is confirmed by the fact that Intel disclosed information about investments totaling about $ 170 million. Coinbase shares turned out to be the smallest position, and most of all funds ($ 160 million) were invested in McAfee, which was previously part of Intel. In addition, the list includes semiconductor equipment manufacturer MaxLinear and Shift4, which specializes in payment processing.
Coinbase had $ 21 billion in profits in 2020, and in comparison with this figure, the share of $ 800 thousand is insignificant. Moreover, the crypto exchange has large investors, in particular ARK Invest, whose share is estimated at $ 2 billion.