Coinbase reportedly entertained the idea of following Michael Saylor’s aggressive Bitcoin investment strategy several times over the past decade but ultimately decided against it.
Concerns over financial stability and the exchange’s competitive neutrality guided their repeated refusals, according to CEO Brian Armstrong.
Cautious Approach to Crypto Holdings
“There were definitely moments over the last 12 years where we thought, man, should we put 80% of our balance sheet into crypto — into Bitcoin specifically,” Armstrong said during a Bloomberg video call on May 9.
However, he emphasized the risk such a move would pose.
“We made a conscious choice about risk,” he stated, noting that prioritizing cash reserves was essential for the company’s long-term survival.
Avoiding Conflict with Customers
Chief Financial Officer Alesia Haas echoed the CEO’s remarks, noting that Coinbase wanted to avoid direct competition with its own users.
The company didn’t want to signal favoritism toward specific cryptocurrencies, a stance that could alienate parts of its user base.
Despite rejecting a massive Bitcoin bet, Coinbase still holds 9,480 BTC—valued at around $988 million—which makes up the majority of its $1.3 billion in total crypto assets.
Still Among Top Corporate Bitcoin Holders
Coinbase ranks ninth among companies holding Bitcoin, trailing major players like Saylor’s MicroStrategy, Tesla, and MARA Holdings.
While Coinbase avoided a full-blown Bitcoin pivot, other public companies have leaned into it, using stock or debt to fund major crypto purchases, expecting Bitcoin appreciation to boost their share price.
Expanding Derivatives Through Deribit Deal
Coinbase made headlines again by acquiring Deribit, a crypto derivatives platform, for $2.9 billion on May 8.
This acquisition is one of the largest in the industry and marks a bold step into the crypto derivatives space.
Previously, Coinbase’s derivatives offering was limited to its Bermuda-based exchange. With Deribit, the firm now claims the title of the “global leader” in crypto derivatives trading.
Deribit reportedly handled more than $1 trillion in trading volume in 2024, with $30 billion in open interest currently on its books—making this acquisition a game-changer for Coinbase’s long-term strategy.