Coinbase’s long-term crypto strategy: CEO Brian Armstrong recently confirmed that the company has considered and ultimately rejected the idea of adopting a Bitcoin-heavy investment approach

This places Coinbase as the ninth-largest corporate holder of Bitcoin globally, behind MicroStrategy, Tesla, and mining firm MARA Holdings.

Coinbase's Long-Term Crypto Strategy: A Measured Approach

Coinbase (NASDAQ:COIN) has long-term survival in mind.

At least that's what CEO Brian Armstrong revealed in a recent interview with Bloomberg, discussing the company's decision not to adopt a Bitcoin-heavy investment approach like MicroStrategy (NASDAQ:MSTR) founder Michael Saylor.

“There were definitely moments over the last 12 years where we thought, man, should we put 80% of our balance sheet into crypto, into Bitcoin specifically?”

While such a move might have massively boosted Coinbase's balance sheet following Bitcoin's meteoric rise, they opted for a more conservative path.

The decision was discussed in the company's Q1 2025 earnings call, where Armstrong and Exchange CFO Alesia Haas explained the rationale behind their strategy.

Financial Risk and Stability

“We made a conscious choice about risk,” Armstrong said. “If we had tied up the majority of our cash reserves in Bitcoin, it could have killed the exchange if the market turned.”

Haas added that they didn't want to be seen as directly competing with their customers by picking favorites in the crypto market.

“We want to maintain that trust with our users,” she said.

Coinbase Buys 153M in Bitcoin and Acquires Deribit for 29B

However, the crypto Exchange is far from neutral when it comes to the digital assets it holds.

In its Q1 2025 earnings report, the company disclosed that it had purchased $153 million worth of crypto assets, primarily Bitcoin.

That brings its total Bitcoin holdings to 9,480 BTC, which are currently valued at approximately $988 million, according to BitcoinTreasuries.net. These holdings now make up the bulk of Coinbase's $1.3 billion in crypto assets.

This places Coinbase as the ninth-largest corporate holder of Bitcoin globally, ranking behind MicroStrategy, Tesla, and mining firm MARA Holdings.

As more than 100 publicly traded companies, 40 ETF issuers, and even 12 nation-states now report holding Bitcoin, Coinbase's measured but growing crypto treasury signals a strategic shift, one that still maintains the firm's core principle of balance and neutrality.

193 publicly traded entities now hold BTC on their balance sheet+200% increase Year to DateThis is just the beginning.We. Are. Going. Higher. 🚀 https://t.co/QqvTssMzaj

But perhaps the biggest headline is Coinbase's expansion beyond spot markets.

On May 8, the company announced a blockbuster $2.9 billion deal to acquire Deribit, the world's leading crypto derivatives platform.

With over $1 trillion in trading volume in 2024 and $30 billion in current open interest, Deribit's acquisition marks the largest corporate crypto deal in industry history.

The move significantly expands Coinbase's footprint in crypto derivatives, an area it previously only explored through its Bermuda-based exchange.

With Deribit onboard, Coinbase now claims the title of “global leader” in crypto derivatives trading.

By rejecting a Bitcoin maximalist strategy and instead pursuing calculated investments and strategic acquisitions, Coinbase is carving out its path that blends growth with discipline.

As the crypto market matures, that balanced approach may be what sets Coinbase apart from the rest.

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