Since Bitcoin has been rising continuously since last year, coupled with Trump's administration's relaxed crypto regulation, many companies have been emulating Strategy (formerly MicroStrategy)'s Bitcoin reserve strategy. Even Coinbase CEO Brian Armstrong candidly admitted that Coinbase had considered investing 80% of its balance sheet in Bitcoin, but ultimately made a conscious choice regarding risks.
(Strategy leads the trend, a comprehensive guide to Bitcoin reserve strategy for corporate investment)
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ToggleCoinbase once considered Bitcoin reserve strategy
According to Bloomberg, the largest US crypto exchange Coinbase had considered investing 80% of its balance sheet in Bitcoin. CEO Brian Armstrong stated:
Over the past 12 years, we indeed had moments where we wondered if we should invest 80% of our balance sheet in cryptocurrency.
Specifically referring to Bitcoin. But ultimately made a conscious choice regarding risks.
Coinbase ultimately decided not to adopt this strategy, as it could potentially harm the company's cash situation as a startup and might "strangle" this San Francisco-based company.
Coinbase's long-term Bitcoin investment will not stop here
Coinbase itself holds crypto assets including Bitcoin, Ethereum, and SOL, for purposes of long-term investment, operational holdings, and borrowed crypto assets and related collateral.
According to its latest financial report, as of 3/31, Coinbase's long-term holdings include:
- Bitcoin: 9,267 coins (6,885 at the end of December)
- Ethereum: 137,334 coins (115,700 at the end of December)
Coinbase CFO Alesia Haas also participated in the discussion, stating that the company does not want to be seen as competing with customers who invest in crypto.
But when discussing increasing the company's crypto holdings, he said:
"Rest assured, we will not stop here."
Coinbase acquires Deribit, launches 24/7 BTC and ETH futures trading
Earlier, Coinbase announced the acquisition of crypto derivatives exchange Deribit for $2.9 billion. Industry analysts welcomed the news, as the growing demand for digital asset products will enable this US exchange to immediately conduct derivatives trading globally and provide institutional-grade infrastructure. Derivatives trading accounts for a much higher proportion of total crypto trading volume compared to spot markets and is more profitable, which will help Coinbase dominate in the US.
Coinbase immediately launched 24/7 Bitcoin and Ethereum futures trading. They emphasized that this is the first time a CFTC-regulated exchange has offered 24/7 leveraged futures contracts.
Risk Warning
Cryptocurrency investment carries high risks, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
