As more companies choose to incorporate Bitcoin into their balance sheets as "corporate reserves," should Coinbase follow suit? CEO Brian Armstrong candidly admitted in the Q1 2025 online financial report Q&A that he had seriously considered investing 80% of assets in Bitcoin, but ultimately felt the risk was too high and could potentially destroy the company. This statement indirectly highlights the fundamental differences between Coinbase's positioning and Bitcoin-heavy companies like MicroStrategy.
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ToggleCoinbase Once Wanted to Go All-In on BTC, Stability Was "More Important" in Early Stages
Armstrong stated that during a conversation with users, the team was asked:
Having entered the crypto industry 8 years earlier than MicroStrategy, why didn't they start accumulating Bitcoin earlier?
Armstrong candidly admitted that they had indeed discussed using 80% of assets to buy BTC, but ultimately abandoned the idea because the company was in its early growth stage, and a sudden Bitcoin price crash could potentially destroy the entire company.
He gave an example: "If our money could originally last 18 months, but suddenly dropped to 10 months, the entire company might not survive."
Coinbase Currently Still Holds BTC and About 25% Cash in Crypto Assets
Despite abandoning the "Bitcoin-heavy strategy," Coinbase still holds BTC. Armstrong added:
"Currently, about 25% of our net cash is in crypto assets. We won't put out 80%, as that would be truly too risky."
Although not as extreme as MicroStrategy, this still demonstrates a certain level of confidence.
CFO Haas Says Coinbase is Operational, Not an Investment Company
CFO Alesia Haas also added that Coinbase is fundamentally an operational company, with the main goal of developing new products and promoting cryptocurrency adoption, aiming to bring one billion people into the crypto world.
Unlike some companies that primarily accumulate assets through additional investments.
"Coinbase has never considered itself an investment company, nor has it made its asset portfolio a core strategy," Haas emphasized.
Coinbase Crypto Assets Continued to Grow, Increasing by $150 Million in One Quarter
According to Haas's public data, as of Q1 2025, Coinbase's total crypto assets were $1.3 billion, increasing by approximately $150 million from January to March. The asset allocation is primarily in Bitcoin, with a small portion in other cryptocurrencies.
She added: "We plan to continue expanding this asset portion, so everyone can rest assured."
How Far is the Difference? A Comparison Will Tell
Although Coinbase holds a significant amount of crypto assets, the gap compared to the largest Bitcoin institutional player MicroStrategy is still vast.
Currently, MicroStrategy:
- Has accumulated over 550,000 Bitcoins
- Total holdings value exceeds $58.2 billion
- Has now realized approximately $30 billion in book gains.
Coinbase Builds Bridges for Stability, Strategy Bets on Faith and the Future
In summary, Coinbase prioritizes long-term operations and product development, choosing a relatively conservative asset allocation strategy. Companies like MicroStrategy, on the other hand, view Bitcoin as their core focus, pursuing a high-risk, high-reward approach. Neither strategy is right or wrong; one is building bridges, while the other is betting on direction.
Risk Warning
Cryptocurrency investments carry high risks, and prices may fluctuate dramatically. You may lose all of your principal. Please carefully assess the risks.
