Coinbase planned Michael Saylor’s Bitcoin Strategy
Coinbase reportedly contemplated implementing a Bitcoin investment playbook such as Michael Saylor's Strategy
Quick overview
- Coinbase considered adopting a Bitcoin investment strategy similar to Michael Saylor's but ultimately chose against it due to potential risks to the company's business.
- CEO Brian Armstrong highlighted concerns that investing heavily in Bitcoin could jeopardize Coinbase's cash position and lead to its downfall.
- Coinbase holds approximately 9,480 Bitcoin, valued at around $1 billion, making it the ninth largest holder among corporate entities.
- The company recently acquired Deribit, enhancing its presence in the cryptocurrency derivatives market significantly.
Live BTC/USD Chart
Coinbase reportedly contemplated implementing a Bitcoin investment playbook, such as Michael Saylor’s Strategy, on several occasions, but ultimately decided against it due to concerns that it would destroy the company’s business
In a video call with Bloomberg on May 9, Coinbase CEO Brian Armstrong stated, “There were moments over the last 12 years where we thought, man, should we put 80 percent of our balance sheet into crypto into Bitcoin specifically.”.
According to Armstrong, the Bitcoin strategy might have jeopardized the company’s cash position and even led to the cryptocurrency exchange’s demise. “We made a deliberate decision regarding risk,” he continued.
Attending the video call, Coinbase Chief Financial Officer Alesia Haas added that the company did not want to appear to be directly competing with its clients over which cryptocurrency would perform better.
BitcoinTreasuries. Data showed Coinbase has 9,480 Bitcoin, which is approximately $1 billion. This represents the majority of Coinbase’s $1.33 billion in cryptocurrency holdings.
Coinbase ranks ninth, behind companies like Strategy, Bitcoin miner MARA Holdings, and Tesla on Bitcoin holdings.
Coinbase agreed to buy Deribit, a platform for cryptocurrency derivatives, making it the biggest corporate acquisition in the industry to date. Through the acquisition, Coinbase’s presence in the cryptocurrency derivatives market, which was previously restricted to its platform located in Bermuda, will be greatly increased.
Coinbase stated that Deribit has about $30 billion in open interest and facilitated over $1 trillion in trading volume in 2024.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals