Coinbase Chooses Not to Follow MicroStrategy: CEO Armstrong Reveals Consideration of Allocating 80% of Assets to BTC, But Deems It Too Risky

05/13/2025

As More Companies Choose to Include Bitcoin as “Corporate Reserves,” Should Coinbase Follow Suit?

On May 10, during the Q&A session of the 2025 Q1 online earnings conference, CEO Brian Armstrong admitted that he had seriously considered allocating 80% of the company’s assets into Bitcoin, but ultimately deemed the risks too high, fearing it could jeopardize the company. This statement indirectly highlights the essential differences in positioning between Coinbase and Bitcoin-heavy companies like MicroStrategy.

Coinbase Once Considered a Full Bet on BTC; Stability Was More Important in Early Stages

Armstrong remarked that during a conversation with users, the team was asked:

“Given that we entered the crypto industry eight years earlier than MicroStrategy, why didn’t we start accumulating Bitcoin sooner?”

In response, Armstrong candidly acknowledged that there had indeed been discussions about investing 80% of the assets into BTC, but ultimately the decision was made to refrain from this strategy since the company was still in its growth phase. A sudden crash in Bitcoin’s price could have directly led to the company’s downfall.

He provided an example: “If our funds were supposed to last for 18 months, and suddenly they were reduced to 10 months, the entire company might not survive.”

Coinbase Still Holds BTC, Approximately 25% Cash in Crypto Assets

Despite abandoning the “Bitcoin-heavy strategy,” Coinbase still holds BTC. Armstrong added:

“Currently, about 25% of the company’s net cash is in crypto assets. We won’t allocate 80%, as that would be far too risky.”

While this approach may not match the extreme measures of MicroStrategy, it does demonstrate a certain level of confidence.

CFO Haas States Coinbase is an Operating, Not an Investment Company

CFO Alesia Haas also emphasized that Coinbase is fundamentally an operating company, with the primary goal of developing new products and promoting the adoption of cryptocurrency, aiming to lead a billion people into the crypto world. This is in contrast to some companies that primarily accumulate assets through increased investments.

“Coinbase has never considered itself an investment company, nor has it regarded its asset portfolio as a core strategy,” Haas stressed.

Coinbase’s Crypto Assets Continue to Grow; $150 Million Increase in One Quarter

According to publicly available data from Haas, as of Q1 2025, Coinbase’s total crypto assets amounted to $1.3 billion, having increased by approximately $150 million from January to March. The asset allocation is primarily in Bitcoin, along with a few other cryptocurrencies.

She added, “We have plans to continue expanding this portion of our assets, and everyone can rest assured.”

How Far Apart Are They from MicroStrategy? A Comparison Reveals the Gap

Although Coinbase holds a substantial amount of crypto assets, with 9,267 Bitcoins, the gap compared to Bitcoin’s largest institutional player, MicroStrategy, remains vast.

As of now, MicroStrategy has:

Accumulated over 550,000 Bitcoins
Total holding value exceeding $58.2 billion
Realized approximately $30 billion in accounting profits.

MicroStrategy founder Saylor’s latest tweet on May 11 regarding BTC purchases (Total holdings exceed $58.2 billion! MicroStrategy’s Saylor: Bitcoin could reach $13 million by 2045)

Coinbase Prioritizes Stability; MicroStrategy Bets on Belief and the Future

In summary, Coinbase places greater emphasis on long-term operations and product development, opting for a relatively conservative asset allocation strategy. In contrast, companies like MicroStrategy view Bitcoin as the core focus, pursuing a high-risk, high-reward path. There are no right or wrong strategies; one is building bridges, while the other is betting on direction.

Risk Warning

Investing in cryptocurrencies carries a high level of risk, and their prices can be extremely volatile, potentially resulting in a total loss of principal. Please assess risks cautiously.