Coinbase Abandons Strategy Approach Due to Risks

Over the years, Coinbase considered investing a significant portion of its reserves in Bitcoin, following the example of Strategy. However, the idea was abandoned due to risks, reports Bloomberg, citing the co-founder and head of the firm, Brian Armstrong.

“Over the last 12 years, there were definitely moments when we thought: ‘Should we invest 80% of our balance in cryptocurrency, specifically Bitcoin?'” he noted.

The company abandoned this idea due to concerns about its financial position. Such a purchase could have “killed” the startup, Armstrong emphasized. According to him, the team made a conscious decision to avoid risks.

Coinbase’s Chief Financial Officer, Alesia Haas, added that the company also “did not want to compete with its own clients.”

According to a report, by the end of the first quarter of 2025, the company held $1.3 billion in crypto assets as investments. Haas stated that Coinbase will continue to increase its holdings.

Experts at Bernstein believe that Strategy’s Bitcoin approach is not applicable to every project. The most suitable candidates are companies with low growth rates and high levels of cash.

Analysts suggest that by 2029, corporations will increase the amount of digital gold on their balance sheets to $330 billion, with Strategy remaining the leader in acquisitions.

Earlier, the firm Twenty One Capital, established by Cantor Fitzgerald, intended to challenge Strategy with a charter fund of 42,000 BTC.