As 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 conference on May 10 that he had seriously considered allocating 80% of the company’s assets to Bitcoin but ultimately deemed the risk too high, which could potentially jeopardize the company. This statement also indirectly highlights the essential differences between Coinbase’s positioning and that of Bitcoin-heavy companies like MicroStrategy.
Coinbase Once Considered a Full Bet on BTC, Stability Was More Important in the Early Stages
Armstrong revealed that during a conversation with users, the team was asked:
“Since we entered the crypto industry eight years earlier than MicroStrategy, why didn’t we start accumulating Bitcoin sooner?”
In response, Armstrong confessed that there were indeed discussions about purchasing BTC with 80% of the assets. However, because the company was still in its early growth stage, a sudden drop in Bitcoin prices could directly lead to the collapse of the entire company, which is why they decided against it.
He gave an example: “If our funds were originally intended for 18 months but suddenly dropped to 10 months, the entire company might not be able to sustain itself.”
Coinbase Still Holds BTC, With Approximately 25% Cash in Crypto Assets
Despite abandoning the “Bitcoin-heavy strategy,” Coinbase still holds BTC. Armstrong added:
“Currently, about 25% of the company’s net cash is in crypto assets. We will not allocate 80%, as that would indeed be too risky.”
While it may not match MicroStrategy’s extreme approach, it does demonstrate a certain level of confidence.
CFO Haas States Coinbase is an Operating Company, Not an Investment Firm
CFO Alesia Haas also emphasized that Coinbase is fundamentally an operating company, with the main goal of developing new products and promoting cryptocurrency adoption, aiming to bring one billion people into the crypto world. This is not like some companies that primarily accumulate assets through increased investments.
“Coinbase has never considered itself an investment company, nor has it regarded asset allocation as a core strategy,” Haas stressed.
Coinbase’s Crypto Assets Continue to Grow, Increasing by $150 Million in One Quarter
According to publicly available data from Haas, as of Q1 2025, Coinbase’s total crypto assets amounted to $1.3 billion, with an increase of approximately $150 million 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 our assets, so everyone can rest assured.”
How Far Apart Are They from MicroStrategy? A Comparison Reveals the Difference
Although Coinbase holds a considerable amount of crypto assets, currently possessing 9,267 Bitcoins, it still pales in comparison to the largest institutional player in Bitcoin, MicroStrategy.
Currently, MicroStrategy has:
- Accumulated over 550,000 Bitcoins
- Total holding value exceeding $58.2 billion
- Realized approximately $30 billion in paper gains.
MicroStrategy founder Saylor’s latest tweet on May 11 showcasing BTC purchases (Total holdings exceed $58.2 billion! MicroStrategy’s Saylor: Bitcoin could reach $13 million by 2045)
Coinbase Focuses on Stability, While Strategy Bets on Belief and the Future
In summary, Coinbase places greater emphasis on long-term operations and product development, opting for a relatively conservative asset allocation strategy. In contrast, companies like MicroStrategy view Bitcoin as their core focus, following a high-risk, high-reward path. There is no right or wrong in these strategies; one is building a bridge, while the other is betting on direction.
Risk Warning
Investing in cryptocurrencies involves significant risks, and their prices can be highly volatile; you may lose your entire principal. Please assess risks carefully.