Coinbase Decided Following Strategy's Bitcoin Reserve Playbook ‘Too Risky’: CEO
Coinbase CEO Brian Armstrong disclosed that the exchange considered allocating 80% of its balance sheet to Bitcoin but ultimately deemed it too risky due to Bitcoin's volatility. This decision was influenced by the need to reach key milestones for funding during Coinbase's early days. Armstrong noted that a significant drop in Bitcoin's price could have jeopardized the company's survival. Currently, Coinbase holds Bitcoin as part of its balance sheet, with approximately 25% of its net cash in crypto. CFO Alesia Haas emphasized that Coinbase focuses on product development and onboarding users to crypto rather than acting as an investment firm. As of Q1 2025, Coinbase's crypto holdings reached $1.3 billion, increasing by $150 million in the first quarter. This amount is significantly lower than the 555,450 BTC held by Strategy, valued at $58 billion.
