Since Bitcoin's rally last year—coupled with favorable crypto regulatory shifts under the Trump administration—several companies have emulated MicroStrategy’s Bitcoin treasury strategy. Even Coinbase CEO Brian Armstrong admitted that the exchange considered allocating 80% of its balance sheet to Bitcoin but ultimately prioritized risk management.
Coinbase’s Deliberation on a Bitcoin Treasury Strategy
According to a Bloomberg report, Coinbase evaluated investing 80% of its balance sheet in Bitcoin. Armstrong stated:
"Over the past 12 years, we’ve had moments where we asked: Should we commit 80% of our balance sheet to crypto?"
Specifically, Bitcoin was the focus. However, the company made a conscious risk-based decision to avoid this strategy, as it might have strained cash reserves and jeopardized operations.
Coinbase’s Long-Term Bitcoin Holdings: Growth Ahead
Coinbase holds a diversified crypto portfolio, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), categorized as:
- Long-term investments
- Operational holdings
- Borrowed assets/collateral
Per its latest quarterly report, as of March 31, Coinbase’s long-term holdings included:
- BTC: 9,267 (up from 6,885 in December)
- ETH: 137,334 (up from 115,700 in December)
CFO Alesia Haas clarified that Coinbase aims to avoid competing with client investments but emphasized:
"Rest assured, we’re not stopping here."
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Coinbase Acquires Deribit, Launches 24/7 BTC and ETH Futures Trading
Coinbase recently acquired Deribit, a leading crypto derivatives exchange, for $2.9 billion. Analysts praised the move, as derivatives trading—more lucrative than spot markets—will amplify Coinbase’s institutional offerings.
The exchange immediately rolled out 24/7 futures trading for BTC and ETH, marking the first CFTC-regulated platform to offer round-the-clock leveraged futures.
Key Takeaways:
- Bitcoin strategy: Coinbase nearly followed MicroStrategy’s lead but opted for caution.
- Portfolio growth: Its BTC holdings surged 35% QoQ, with plans for further accumulation.
- Derivatives expansion: The Deribit acquisition positions Coinbase as a global derivatives leader.
FAQ
Q: Why did Coinbase avoid an 80% Bitcoin allocation?
A: Risk management—preserving liquidity and operational stability were priorities.
Q: How much Bitcoin does Coinbase own?
A: 9,267 BTC (as of Q1 2025), with explicit plans to increase holdings.
Q: What’s the significance of the Deribit acquisition?
A: It enables Coinbase to dominate crypto derivatives, a higher-margin market than spot trading.
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Note: Crypto investments carry high risk due to volatility. Assess your risk tolerance carefully.