According to Bloomberg
the American cryptocurrency exchange Coinbase had previously considered adopting the Bitcoin purchasing strategy advocated by Michael Saylor, but ultimately deemed this approach too risky and abandoned it.
In recent years, many companies have attempted to emulate the strategy adopted by the American software company Strategy (formerly MicroStrategy), which involves raising funds through issuing stocks and bonds to purchase Bitcoin, betting that the rapid appreciation of this cryptocurrency will increase their stock prices.
Coinbase co-founder and CEO Brian Armstrong stated during a live discussion on the social media platform X on Friday, “Over the past 12 years, we have indeed had a few moments where we thought, ‘Hey, should we put 80% of our balance sheet into cryptocurrency, especially Bitcoin?’.”
However, Coinbase ultimately decided against adopting this bold strategy, reasoning that it could jeopardize the company’s cash position as a startup and even potentially “ruin” the San Francisco-based company. Armstrong remarked, “We made a thoughtful choice regarding risk.”
That said, according to Coinbase’s latest shareholder letter, the company purchased $153 million worth of cryptocurrency (mostly Bitcoin) in the first quarter as part of its investment portfolio. To date, it holds approximately $1.3 billion in cryptocurrency, primarily Bitcoin.
Coinbase CFO Alesia Haas, who participated in the X discussion, added that the company does not wish to be perceived as competing with its own customers, who are themselves investors in cryptocurrency. While discussing plans to expand its cryptocurrency holdings, she stated, “Rest assured, we will not stop here.”
Since 2020, Strategy has continuously bought Bitcoin, and as the asset’s price has appreciated, the company’s stock price has skyrocketed over 3,000%. As of May 4, Strategy and its subsidiaries collectively hold 555,450 Bitcoins, with an average purchase price of approximately $68,550. Based on the current Bitcoin price of about $103,900, their holdings are currently valued at around $57.7 billion.