TL;DR
- Coinbase seriously considered investing up to 80% of its balance sheet in Bitcoin, a strategy similar to that of businessman Michael Saylor.
- Ultimately, the company decided against it due to risk management concerns.
- Nevertheless, it now holds more than $1.3 billion in crypto assets and continues to strengthen its commitment to the digital ecosystem.
In a recent video call with Bloomberg, Coinbase CEO Brian Armstrong revealed that the company seriously evaluated allocating the majority of its balance sheet to Bitcoin. The inspiration came from the aggressive approach of Michael Saylor and his company MicroStrategy, which has accumulated billions in BTC as a strategic reserve. According to Armstrong, this idea resurfaced multiple times over the past 12 years, especially during key market cycles that highlighted Bitcoin’s resilience.
However, despite their optimism about Bitcoin’s future, they ultimately chose not to pursue that route.
“We made a conscious choice about risk,”
Armstrong stated. The main concern was that, being a relatively young company, such a massive move could compromise its liquidity and jeopardize its operational viability. A sudden market crash, for example, could have dangerously and irreversibly impacted their financial stability in a way that would have been difficult to recover from.
Coinbase’s Chief Financial Officer, Alesia Haas, reinforced this position by stating that the company didn’t want to be perceived as competing with its own customers in cryptocurrency accumulation. Instead of a single massive bet, Coinbase has opted for a more progressive and responsible strategy. This approach also gives the firm greater flexibility to adapt to evolving regulatory frameworks and technological changes in the crypto industry, which remains highly dynamic and unpredictable.
Strong Commitment to the Crypto World
Although Coinbase didn’t adopt the “all-in on BTC” strategy, its interest in strengthening its role within the ecosystem is clear. In the first quarter of 2025, the company invested $153 million in crypto assets, primarily in Bitcoin. Currently, it holds 9,480 BTC, valued at approximately $988 million, and a total crypto portfolio exceeding $1.3 billion.
Additionally, on May 8, Coinbase announced the acquisition of Deribit, one of the leading crypto derivatives platforms, for $2.9 billion. With this transaction, Coinbase positions itself as the global leader in crypto derivatives trading, reinforcing its long-term vision and global expansion.
This decision shows that while Coinbase has chosen not to risk everything at once, its bet on a decentralized future remains strong and expanding. Could this be the smartest strategy in a market that rewards both boldness and stability?
