title: Coinbase CEO Brian Armstrong Says the Exchange Explored Investing Most of Its Cash Reserve in Bitcoin (BTC)

The CEO of the largest digital asset exchange in the US reportedly says Coinbase explored investing most of its cash reserve in Bitcoin (BTC).

Coinbase (NASDAQ:COIN) CEO Brian Armstrong has revealed that the largest digital asset exchange in the US considered investing most of its cash reserve in Bitcoin (BTC).

Speaking at the Bitcoin 2024 conference in San Antonio, Armstrong says that they previously discussed adopting the same crypto investment strategy taken by MicroStrategy (NASDAQ:MSTR) CEO 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. We'd follow the strategy that Michael [Saylor] has taken at MicroStrategy.”

But Coinbase eventually decided against the idea because it could jeopardize the company’s cash position as a startup and even potentially cause its demise.

“We made a conscious choice about risk. We're a startup; we didn't want to bankrupt the company.”

Coinbase CFO Alesia Haas supports the move, explaining that the company doesn't want to appear as though it’s stockpiling Bitcoin in competition with its own customers.

“We didn't want to go out there and start buying up a huge portion of the Bitcoin float as if we're competing with our customers.”

Coinbase abandoned its massive Bitcoin accumulation plan, but its latest shareholder letter shows that the firm spent $153 million in Q1 of this year to accumulate digital assets, mostly in Bitcoin. The company now holds $1.3 billion in crypto.

“Rest assured, we are not stopping there. We plan to continue to increase our capital over time to meet regulatory needs, support growing utility and further demonstrate our commitment to the industry.”

At time of writing, Bitcoin is trading for $103,935.