Coinbase has reportedly evaluated a treasury strategy centered on Bitcoin, inspired by the approach of MicroStrategy’s Michael Saylor, but ultimately chose not to follow through, citing concerns over the potential impact on its core exchange operations.
In a May 9 interview with Bloomberg, CEO Brian Armstrong disclosed that the proposition to allocate a substantial part of Coinbase’s balance sheet to Bitcoin had emerged periodically over the past 12 years.
Armstrong stated, “There were definitely moments where we thought, should we put 80% of our balance sheet into Bitcoin?” However, he articulated that the firm opted for a more risk-averse strategy, indicating that such a radical move could have threatened Coinbase’s liquidity and operational stability.
Coinbase Stays Neutral by Avoiding Direct Crypto Bets
Echoing Armstrong’s sentiments, Chief Financial Officer Alesia Haas confirmed the company’s deliberate choice to avoid competing with its customers by investing heavily in specific cryptocurrencies.
Nevertheless, Coinbase maintains a notable exposure to Bitcoin. In its recently released earnings report from May 8, the company disclosed a $153 million investment in cryptocurrency during Q1, predominantly in BTC.
Data from BitcoinTreasuries.net reveals that Coinbase now holds 9,480 BTC, which has an estimated value close to $1 billion at current market prices.
This positions Coinbase as the ninth-largest corporate holder of Bitcoin globally, following firms like MicroStrategy, Tesla, and Marathon Digital Holdings.
While Coinbase refrained from fully committing to a Bitcoin-centric strategy, other businesses have adopted Saylor’s model, leveraging equity and debt to facilitate significant Bitcoin purchases.
More than 100 public companies, 40 ETF issuers, and 12 nation-states are now known to hold Bitcoin.
193 publicly traded entities now hold BTC on their balance sheet
+200% increase Year to Date
This is just the beginning.
We. Are. Going. Higher. https://t.co/QqvTssMzaj
— Mitchell (@MitchellHODL) May 10, 2025
Additionally, Coinbase attracted attention this week with its acquisition of crypto derivatives platform Deribit for $2.9 billion, marking the largest merger in the industry to date.
This strategic acquisition significantly enhances Coinbase’s involvement in the crypto derivatives sector, an area previously accessed mainly through its operations based in Bermuda.
Deribit reported over $1 trillion in trading volume for 2024 and has $30 billion in open interest, further solidifying Coinbase’s claim as a prospective “global leader” in the crypto derivatives market.
Mixed Q1 Results: Revenue Up, Profit Down
Coinbase’s first-quarter financial results revealed a mixed performance, with revenue increasing by 24% year-over-year to reach $2 billion. However, this was below analyst expectations and marked a 10% decrease from the previous quarter.
Transaction revenue climbed to $1.26 billion, while its subscription and services sector—which includes staking and custodial services—increased by 37% to nearly $700 million, indicative of the firm’s growing efforts to diversify beyond just trading.
Despite the revenue growth, net income plummeted by 94% to $66 million due to markdowns of its crypto assets amidst market volatility.
Adjusted earnings came in at $526.6 million, or $1.94 per share, which is still lower than the previous year’s figure of $2.53. Operating expenses rose by 51% to $1.3 billion, largely driven by intensified marketing efforts and asset write-downs.
The fluctuations in digital asset prices and variable macroeconomic factors weighed down Coinbase’s earnings. Nonetheless, the company reported its second-highest monthly user count, with CFO Alesia Haas noting increased engagement in non-trading services.
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