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Coinbase, one of the largest cryptocurrency exchanges, announced that it has considered adopting MicroStrategy’s aggressive Bitcoin investment strategy several times but ultimately chose not to. Speaking to Bloomberg, CEO Brian Armstrong explained that there were multiple instances over the past 12 years when the company contemplated allocating up to 80% of its balance sheet to Bitcoin.
Although they initially considered it, Armstrong stated that the uncertainty about Coinbase's financial health as a start-up affected their decision to take a cautious approach.
The primary concern was that such a bold move could endanger the company’s cash position, which was crucial for its operations. “We made a conscious choice about risk,” Armstrong said, emphasizing the potential dangers of following a strategy similar to that of Michael Saylor’s MicroStrategy, a company well-known for aggressively accumulating Bitcoin as part of its corporate strategy. Armstrong’s comments suggest that while Coinbase was interested in embracing Bitcoin as a key asset, the firm’s priority was maintaining stability in a volatile and rapidly changing market.
Although Coinbase decided not to follow MicroStrategy’s way of accumulating Bitcoin, the firm has a significant position in the cryptocurrency world. In May 2025, Coinbase had amassed nearly 9,480 Bitcoin, which was about $988 million at the expense of market prices. This is a high proportion of its cryptocurrency holdings of $1.3 billion. Armstrong reports that Coinbase has expanded its holdings aggressively allocating $153 million in cryptocurrencies in the first quarter of 2025, mainly in Bitcoin.
Coinbase’s strategy focuses on maintaining a balanced approach to cryptocurrency investment while avoiding direct competition with its customers. Alesia Haas, the firm’s Chief Financial Officer, affirmed that Coinbase does not view its crypto purchases as competing with its clients' investments.
Haas stated, “Rest assured, we are not stopping there,” signaling that Coinbase plans to continue increasing its crypto assets over time. However, it will proceed cautiously to avoid overexposing the company to Bitcoin’s volatility.
While Coinbase chose a conservative approach, many other companies have increasingly adopted the Bitcoin investment playbook pioneered by MicroStrategy. This strategy involves using company funds, often raised through stock and debt sales, to buy Bitcoin, believing its long-term price appreciation will benefit the company’s share price.
Over 100 public companies have now reported holding Bitcoin and numerous private firms and investment funds. MicroStrategy remains the largest corporate holder of Bitcoin, and its approach has served as a model for others in the industry.
