tl;dr
Coinbase CEO Brian Armstrong revealed the company considered allocating 80% of its balance sheet to Bitcoin but decided against it due to the high risk and potential to jeopardize the company's survival during its early funding stages. Coinbase currently holds about 25% of its net cash in crypto, pr...
Coinbase once considered allocating 80% of its balance sheet to Bitcoin but ultimately rejected the idea due to the significant volatility risks that could have endangered the company’s survival during its early funding stages.
Currently, Coinbase holds approximately 25% of its net cash in cryptocurrency, primarily Bitcoin, totaling about $1.3 billion in crypto assets as of Q1 2025.
The company prioritizes product development and onboarding new users rather than aggressively expanding its crypto investment portfolio as a core business strategy.
In stark contrast, software firm Strategy maintains a highly aggressive Bitcoin treasury approach, holding 555,450 BTC valued around $58 billion, having started acquisitions in August 2020 and realizing substantial paper profits since.
Coinbase CEO Brian Armstrong explained that adopting an 80% Bitcoin allocation would have significantly reduced the company’s operational runway—from 18 months potentially to 12 or even 10 months—posing a fatal risk during critical growth phases.
CFO Alesia Haas emphasized that Coinbase views itself as an operating company focused on innovation and scaling crypto adoption, rather than as an investment company growing a large crypto reserve.
Haas noted that Coinbase's crypto holdings increased by $150 million in early 2025, mostly in Bitcoin with some other digital assets, and the company plans to continue growing these reserves cautiously.
Meanwhile, the dramatic difference in treasury strategies between Coinbase and firms like Strategy reflects broader market trends, where some companies embrace large Bitcoin treasuries seeking long-term gains, while others maintain more conservative crypto exposure to sustain operational stability.