Coinbase Stock Pops on Google Deal to accept crypto for cloud
Coinbase Stock Pops on Google Deal to accept crypto for cloud
- Google has chosen Coinbase to process crypto payments for selected customers
- Both companies strive to diversify their sources of income
The coin base share increased during the pre-exchangeable trade on Tuesday after the news that Google will enable some customers to pay the cloud services of the technology giant with cryptocurrency from next year.
The deal will lead to Coinbase its data -related applications from the cloud of its usual Amazon Web Services for Google, CNBC, registered .
Google will accept payments for cloud services from a small group of customers in the entire web3 area via a Coinbase Commerce integration.
The e-commerce offer from Coinbase supports 10 digital assets such as Bitcoin and ether alongside stable coins USDC and Meme Coins Dogecoin and Shiba Inu.
As the rest of his customers, Coinbase would make a reduction in Google-related transactions, although the amount of the income that it could possibly generate is unclear.
Amit Zavery, Vice President at Google Cloud, told CNBC that it had checked business with several companies before it ended up at Coinbase. Jim Migdal, Vice President for Business Development at Coinbase, said that the two companies had been talking for months.
Coinbase has rely on trade fees in the past to generate almost 90 % of his income, and has worked to diversify its sources of income in order to survive the cyclical nature of the crypto sector.
Google has told similar to expanding beyond its main source href = "https://nymag.com/intelligencer/2019/02/google-earnings-show-it-neds-more-than-ad-company.html"> Advertising . The Big G is now trying to offer digital wealth management services via the Custody offer Prime from Coinbase, although these plans only appear exploratory for the time being.
The Coinbase share increased stronger than the Google parent company
sundar Pichai, the CEO of the parent company Alphabet, also said that the company in a call for profits in February "definitely consider blockchain", especially with regard to the power supply of computer and service levels for YouTube and Google Maps.
Nevertheless, this deal seems to focus much more on cryptocurrencies than on the underlying technologies. And so far the markets seem to react to how Coinbase could benefit from it - more than Google.
The stocks of the stock exchange, which have fallen by 73 % since the beginning of the year, rose by 5 % during the pre -exchangeable trade when the message about the transaction became known. The technology -based Nasdaq 100, on the other hand, lost 0.25 %.
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The article Coinbase Stock Pops on Google Deal to Accept Crypto for Cloud is not a financial advice.