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Confessions from the CEO of Coinbase: "At one point, we considered buying a significant amount of Bitcoin like MicroStrategy, but..."
The largest cryptocurrency exchange in the US, Coinbase, stated that it evaluated the aggressive Bitcoin acquisition strategy adopted by MicroStrategy's founder Michael Saylor in the past but has abandoned this plan due to risks.
Coinbase CEO and co-founder Brian Armstrong stated in a video talk on social media platform X, "Several times over the last 12 years, we wondered if we should invest 80% of our balance sheet assets in Bitcoin." However, according to Armstrong, this strategy could seriously jeopardize the company's cash position and potentially lead Coinbase to bankruptcy. Armstrong stated, "We made a conscious choice regarding risk."
Although Coinbase has largely abandoned this strategy, the company added $153 million worth of cryptocurrency, predominantly Bitcoin, to its investment portfolio in the last quarter. According to Coinbase's latest shareholder letter, the company holds a total of $1.3 billion in cryptocurrency.
Coinbase Chief Financial Officer Alesia Haas, speaking in the same broadcast on the X platform, stated that they do not want to compete with their customers. Haas, who said, "We will not stop at this point," indicated that the company will continue to increase its crypto assets.
On the other hand, many companies have started to follow similar strategies by emulating Saylor's model of financing Bitcoin investments through equity and debt sales. MicroStrategy's shares have gained over 3000% in value since it began purchasing Bitcoin in 2020. The company holds approximately 54 billion dollars worth of Bitcoin.