Coinbase CEO spills on why the exchange didn’t bet the farm on Bitcoin
By: dl news|2025/05/11 18:00:13
0
Share
Crypto has a reputation for being a high-risk investment. So much so that even one of the world’s largest crypto companies was spooked out of betting the farm on Bitcoin.Coinbase CEO Brian Armstrong revealed during a recent video talk on X that the exchange once considered adopting a Michael Saylor-style Bitcoin accumulation strategy — the kind that transformed Strategy into the largest corporate holder of Bitcoin today. But Armstrong said the company ultimately backed away, fearing the move could have wiped out its cash reserves and potentially “killed” the firm in its early years, according to Bloomberg.“There were definitely moments over the last 12 years where we thought, man, should we put 80% of our balance sheet into crypto — into Bitcoin specifically,” Armstrong said. “We made a conscious choice about risk.”Coinbase Chief Financial Officer Alesia Haas echoed this sentiment, saying the company didn’t want to be seen as competing against its own customers by heavily investing in a single cryptocurrency. Instead, Coinbase has taken a more conservative approach, adding roughly $153 million in crypto, mostly Bitcoin, to its investment portfolio in the first quarter of 2025. The exchange now holds about $1.3 billion worth of digital assets, according to its recent first-quarter update.In contrast, Michael Saylor’s Strategy has gone all in on Bitcoin, amassing more than 555,000 Bitcoin worth nearly $58 billion at today’s prices.The company’s latest purchase, a 15,355 Bitcoin addition earlier this month, brings it closer to founder Michael Saylor’s vision of transforming the firm into a “Bitcoin bank.”Strategy is hardly alone in this approach. According to Bitwise data from last month, 79 public companies now hold Bitcoin, collectively controlling 688,000 Bitcoin worth around $57 billion. However, Bitcoin prices have surged over 25% since then, pushing the value of these holdings significantly higher. Meanwhile, companies like Strategy and Metaplanet have added thousands more Bitcoins to their treasuries as the market rebounds.This also includes Bitcoin miners, small-cap firms, and new entrants like Twenty One Capital, a venture co-launched by Cantor Fitzgerald and Tether, which aims to emulate the Michael Saylor strategy.Crypto market moversBitcoin has gained 0.7% in the past 24 hours and is trading at $104,250.Ethereum is up 5.3% in the same period to $2,510.What we’re readingBlackRock beefs up quantum compute threat warnings to Bitcoin investors ― DL NewsDeFi Looping Comes to Apollo’s $1.3 Billion Credit Fund. What Could Go Wrong? ― UnchainedWhy most tokens = terrible investments ― Milk RoadSamourai Wallet developers stuck in legal limbo after prosecutors reject dismissal bid ― DL NewsKyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
You may also like
The large models in the United States are moving towards closure in the name of security
The government successfully inserted itself as an approver between commercial AI models and their users for the first time.
Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
Overview of Important Market Events on June 25
From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.
Why do cryptocurrency projects always like to change their names?
In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.
Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
The trusted AI prediction ecosystem Manadia, which has secured $7 million in funding from well-known institutions like OKX, will globally launch in June. The core token UMXM has already been listed on multiple mainstream platforms, inviting you to seize the new blue ocean of the trillion-level predi...
Who is footing the bill for the $64 billion accounting frenzy?
Affected by Bitcoin falling below $60,000, publicly listed companies heavily invested in this asset are facing huge paper losses and valuation discounts, and their debt structure and accounting standards may trigger structural liquidity risks in the future.
I never expected that the first application of AI x Crypto would be in security auditing
AI has accelerated attack efficiency and also promoted the upgrade of defense systems. The security audit sector is undergoing a transition from a dividend model to a competitive model.
What is your view on Binance's competitive advantages?
When the dividends of rule arbitrage gradually approach zero, can we produce product strength, governance capability, and trust that are commensurate with its scale?
ETH has entered a non-consensus phase, and the turning point is approaching!
This has nothing to do with the Ethereum Foundation or Ethlabs; Ethereum needs to win by solving real problems.
The shift in the cloud of the air: from despising stablecoins a year ago to the high-profile entry of capital today
It can continue to question the cost-effectiveness of stablecoins in the G10 currency corridor, but it cannot ignore the structural opportunities of stablecoins in emerging markets, corporate finance, and on-chain settlements.
The survival dilemma of small and medium exchanges behind the withdrawal anomalies exposed by AscendEX
The living space is constantly being compressed.
Why Is Bitcoin Falling Below $60K? 5 Key Market Drivers Explained
Bitcoin has dropped sharply amid ETF outflows, Strategy stock weakness, AI stock rallies, and changing Fed expectations. Explore the key forces driving BTC’s latest correction and what traders should watch next.
Bitcoin vs. Gold in 2026: Which Asset Performs Better in Different Markets?
Bitcoin vs. gold in 2026: Why are both assets falling, and what does their changing correlation mean? Discover what drives Bitcoin and gold prices and how traders can navigate different market conditions.
Morning News | The draft amendment to the People's Bank of China Law aims to clarify the legal status of digital renminbi; South Korea will transfer about 40 unregistered virtual asset service providers to law enforcement agencies
Overview of Important Market Events on June 24
The cryptocurrency industry has entered the "Show Me" era: merely relying on vision is no longer enough
The awareness level of the audience in the cryptocurrency industry—including media, institutions, and retail investors—is steadily increasing, and this trend has become a foregone conclusion.
Interpreting the Ethereum Foundation's new structure: Reaffirming self-sovereignty amid institutional trends
The Ethereum Foundation has announced a new five-layer working framework, clarifying the focus of future development and reaffirming its commitment to decentralized core values amidst the wave of institutionalization.
Former SpaceX engineer reconstructs the financial execution system using first principles
Plan Execution Lab completes angel round financing for Singapore family office, with a valuation of 50 million USD.
Standard Chartered Bank sings a 50x rhapsody again, aiming for AAVE to reach 3500 USD
The throne of DeFi lending still exists, but the foundation beneath the throne needs to undergo a reconstruction or reinforcement.
The large models in the United States are moving towards closure in the name of security
The government successfully inserted itself as an approver between commercial AI models and their users for the first time.
Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
Overview of Important Market Events on June 25
From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.
Why do cryptocurrency projects always like to change their names?
In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.
Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
The trusted AI prediction ecosystem Manadia, which has secured $7 million in funding from well-known institutions like OKX, will globally launch in June. The core token UMXM has already been listed on multiple mainstream platforms, inviting you to seize the new blue ocean of the trillion-level predi...
Who is footing the bill for the $64 billion accounting frenzy?
Affected by Bitcoin falling below $60,000, publicly listed companies heavily invested in this asset are facing huge paper losses and valuation discounts, and their debt structure and accounting standards may trigger structural liquidity risks in the future.
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com
