Coinbase Reconsiders Bitcoin Investment Strategy Amid Financial Risks

In recent years, Coinbase has explored the idea of investing a substantial portion of its reserves into Bitcoin, following Strategy’s example. However, they ultimately decided against this approach due to the associated risks. This was reported by Bloomberg, citing co-founder and CEO Brian Armstrong.

_«Over the past 12 years, there have definitely been moments when we considered, ‘What if we invested 80% of our balance into cryptocurrency, specifically Bitcoin?’” he remarked._

The company decided to abandon this idea due to concerns about its financial stability. Armstrong emphasized that such a purchase could potentially «kill» the startup, leading the team to make a deliberate choice to sidestep the risks.

Coinbase’s Chief Financial Officer, Alicia Haas, added that the company also «didn’t want to compete with its own customers.»

According to a report, as of the end of Q1 2025, Coinbase held $1.3 billion in crypto assets as investments. Haas stated that Coinbase intends to continue increasing its holdings.

Experts from Bernstein believe that the Bitcoin strategy employed by Strategy is not suitable for every project. The best candidates are firms with slow growth and substantial cash reserves.

Analysts predict that by 2029, corporations will enhance their balance sheets with digital gold, reaching $330 billion, with Strategy remaining a leading buyer.

Additionally, it’s worth noting that the firm Twenty One Capital, established by Cantor Fitzgerald, aims to challenge Strategy with a capital consisting of 42,000 BTC.