"Almost Invested 80% of Assets"... Coinbase Considered Large Bitcoin Purchase

Nasdaq-listed cryptocurrency exchange Coinbase internally considered a 'Bitcoin-focused purchase strategy' multiple times but ultimately decided not to execute it.

On the 10th (local time), Brian Armstrong, CEO of Coinbase, stated in an interview with Bloomberg, "We have repeatedly pondered whether we should invest 80% of our assets in Bitcoin," adding, "However, we determined that this could be detrimental to our cash position and the exchange business itself."

Alesia Haas, CFO of Coinbase, who was present at the interview, said, "We did not want to appear as if we were directly competing with customers over specific cryptocurrencies," adding, "Investment concentration does not benefit the business."

However, Coinbase has not completely ignored Bitcoin. The company disclosed that it purchased $153 million worth of cryptocurrencies in the first quarter of this year, with a significant portion focused on Bitcoin. Currently, Coinbase holds 9,480 Bitcoins (approximately $988 million), which constitutes the majority of the company's total cryptocurrency holdings of $1.3 billion. This ranks as the ninth largest among publicly listed companies worldwide.

The movement of traditional companies mimicking the Bitcoin strategy of strategy is also spreading. Some companies are adopting a strategy of raising funds through stock and bond issuance, then purchasing Bitcoin to aim for a rebound in stock prices following a price increase.

The number of companies holding Bitcoin is also on the rise. It is currently identified that over 100 publicly listed companies, 40 ETF issuers, 26 private companies, and 12 national governments officially hold Bitcoin worldwide.