As more and more companies choose to include Bitcoin in their balance sheets as "corporate reserves," should Coinbase follow suit? CEO Brian Armstrong admitted during the Q&A session of the 2025 Q1 online earnings call on May 10 that he seriously considered investing 80% of its assets in Bitcoin, but ultimately deemed the risks too high, which could potentially bankrupt the company. This statement also indirectly highlights the essential differences between Coinbase's positioning and that of Bitcoin-heavy companies like MicroStrategy (Strategy).
Coinbase once wanted to bet everything on Bitcoin, as "stability was more important" in the early stages.
Armstrong stated that during a conversation with users, the team was asked:
Since MicroStrategy entered the crypto industry 8 years earlier than (Strategy), why didn't they start hoarding Bitcoin sooner?
In this regard, Armstrong admitted that there was indeed a discussion about using 80% of the assets to purchase BTC back then, but ultimately, because the company was still in its early growth stage, a sudden collapse in Bitcoin prices could directly drag down the entire company, so it was abandoned.
He exemplified: "If our money was originally supposed to last for 18 months, but suddenly it only lasts for 10 months, the entire company might not be able to survive."
Coinbase currently still holds BTC and has about 25% cash in crypto assets.
Despite abandoning the "Bitcoin heavy position strategy", Coinbase still has BTC. Armstrong added:
"Currently, about 25% of the company's net cash is in crypto assets, and we won't take out 80% because that would really be too risky."
Although it cannot match the extreme approach of MicroStrategy (Strategy), it has shown a certain level of confidence.
CFO Haas stated that Coinbase is an operational, not an investment, company.
Chief Financial Officer Alesia Haas also added that Coinbase is essentially an operating company, with the primary goal of developing new products and promoting the adoption of cryptocurrencies, aiming to lead a billion people worldwide into the crypto world.
instead of accumulating assets primarily through increased investments like some companies do.
"Coinbase has never seen itself as an investment company, nor has it considered its asset portfolio as a core strategy," Haas emphasized.
Coinbase's crypto assets continue to grow, increasing by $150 million in one quarter.
According to public data from Haas, as of the first quarter of 2025 (Q1), Coinbase's total cryptocurrency assets amounted to 1.3 billion dollars, with an increase of about 150 million dollars from January to March. The asset allocation is primarily in Bitcoin, with a few other cryptocurrencies.
She added, "We plan to continue expanding this portion of assets, so everyone can rest assured."
How far is it from MicroStrategy? You will know by comparing.
Although the amount of crypto assets held by Coinbase seems substantial, it is still worlds apart compared to the largest institutional player in Bitcoin, MicroStrategy (Strategy).
Current MicroStrategy:
Over 550,000 Bitcoins have been accumulated.
The total holdings value exceeds 58.2 billion USD.
Now it has achieved approximately 30 billion dollars in book revenue.
MicroStrategy founder Saylor's latest tweet on 5/11 about buying BTC.
(BTC total holdings exceed 58.2 billion! MicroStrategy Saylor: Bitcoin is expected to reach 13 million dollars per coin by 2045 )
Coinbase needs to build a stable bridge, Strategy bets on faith and the future.
In summary, Coinbase places more emphasis on long-term operations and product development, opting for a relatively conservative asset allocation strategy. In contrast, companies like MicroStrategy (Strategy) view Bitcoin as the core and pursue a high-risk, high-return approach. There is no right or wrong between the two strategies; one is building bridges, while the other is betting on direction.
This article discusses whether Coinbase should learn from MicroStrategy? CEO Armstrong: I considered buying BTC with 80% of our assets, but it was too risky. First appeared in Chain News ABMedia.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Coinbase doesn't learn from MicroStrategy? CEO Armstrong: Considered buying 80% of assets in BTC, but it was too risky.
As more and more companies choose to include Bitcoin in their balance sheets as "corporate reserves," should Coinbase follow suit? CEO Brian Armstrong admitted during the Q&A session of the 2025 Q1 online earnings call on May 10 that he seriously considered investing 80% of its assets in Bitcoin, but ultimately deemed the risks too high, which could potentially bankrupt the company. This statement also indirectly highlights the essential differences between Coinbase's positioning and that of Bitcoin-heavy companies like MicroStrategy (Strategy).
Coinbase once wanted to bet everything on Bitcoin, as "stability was more important" in the early stages.
Armstrong stated that during a conversation with users, the team was asked:
Since MicroStrategy entered the crypto industry 8 years earlier than (Strategy), why didn't they start hoarding Bitcoin sooner?
In this regard, Armstrong admitted that there was indeed a discussion about using 80% of the assets to purchase BTC back then, but ultimately, because the company was still in its early growth stage, a sudden collapse in Bitcoin prices could directly drag down the entire company, so it was abandoned.
He exemplified: "If our money was originally supposed to last for 18 months, but suddenly it only lasts for 10 months, the entire company might not be able to survive."
Coinbase currently still holds BTC and has about 25% cash in crypto assets.
Despite abandoning the "Bitcoin heavy position strategy", Coinbase still has BTC. Armstrong added:
"Currently, about 25% of the company's net cash is in crypto assets, and we won't take out 80% because that would really be too risky."
Although it cannot match the extreme approach of MicroStrategy (Strategy), it has shown a certain level of confidence.
CFO Haas stated that Coinbase is an operational, not an investment, company.
Chief Financial Officer Alesia Haas also added that Coinbase is essentially an operating company, with the primary goal of developing new products and promoting the adoption of cryptocurrencies, aiming to lead a billion people worldwide into the crypto world.
instead of accumulating assets primarily through increased investments like some companies do.
"Coinbase has never seen itself as an investment company, nor has it considered its asset portfolio as a core strategy," Haas emphasized.
Coinbase's crypto assets continue to grow, increasing by $150 million in one quarter.
According to public data from Haas, as of the first quarter of 2025 (Q1), Coinbase's total cryptocurrency assets amounted to 1.3 billion dollars, with an increase of about 150 million dollars from January to March. The asset allocation is primarily in Bitcoin, with a few other cryptocurrencies.
She added, "We plan to continue expanding this portion of assets, so everyone can rest assured."
How far is it from MicroStrategy? You will know by comparing.
Although the amount of crypto assets held by Coinbase seems substantial, it is still worlds apart compared to the largest institutional player in Bitcoin, MicroStrategy (Strategy).
Current MicroStrategy:
Over 550,000 Bitcoins have been accumulated.
The total holdings value exceeds 58.2 billion USD.
Now it has achieved approximately 30 billion dollars in book revenue.
MicroStrategy founder Saylor's latest tweet on 5/11 about buying BTC.
(BTC total holdings exceed 58.2 billion! MicroStrategy Saylor: Bitcoin is expected to reach 13 million dollars per coin by 2045 )
Coinbase needs to build a stable bridge, Strategy bets on faith and the future.
In summary, Coinbase places more emphasis on long-term operations and product development, opting for a relatively conservative asset allocation strategy. In contrast, companies like MicroStrategy (Strategy) view Bitcoin as the core and pursue a high-risk, high-return approach. There is no right or wrong between the two strategies; one is building bridges, while the other is betting on direction.
This article discusses whether Coinbase should learn from MicroStrategy? CEO Armstrong: I considered buying BTC with 80% of our assets, but it was too risky. First appeared in Chain News ABMedia.