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Coinbase skipped $54B Bitcoin bet that sent Strategy soaring 3,000%

By: cryptosheadlines|2025/05/10 10:00:13
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Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Coinbase Global Inc., one of the largest US cryptocurrency exchanges, revealed it once considered a high-stakes Bitcoin buying strategy similar to that of Michael Saylor, the founder of Strategy. However, the company ultimately decided against going all-in on Bitcoin, citing concerns over the risks to its startup status and financial stability.Coinbase chose risk management over Saylor-style Bitcoin gambleOn a Friday video discussion on the X social network, Brian Armstrong, the chief executive of Coinbase, looked back at his company’s decision-making. He admitted that at various times over the last 12 years, the thought of putting 80% of their balance sheet into crypto — especially Bitcoin — was interesting. But as tempting as it was to get in on the action, Coinbase didn’t want to take such a danger-fraught route.Armstrong said the move was calculated by assessing risks. He noted that going all in on Bitcoin would have risked the financial solvency of a startup and possibly “killed” the company. It was a reasoned decision arising from how to manage risk well.While Coinbase declined to take the Bitcoin bet Saylor’s company made, it still sits on a sizable crypto portfolio. However, according to its latest shareholder letter, the company purchased $153 million in cryptocurrency, mostly Bitcoin, in the first quarter of 2025. Its investment portfolio is now worth $1.3 billion in crypto assets.Alesia Haas, Coinbase’s chief financial officer, who also appeared at the X discussion, emphasized the company’s conservative stance. She said the company did not want to be seen as in competition with its crypto investor customers. Haas also said the firm will grow its crypto holdings.Companies follow Saylor’s lead, emulating his Bitcoin strategyMeanwhile, other companies have tried replicating Saylor’s model of funding Bitcoin purchases by issuing stock and debt. Since Strategy’s Bitcoin buying spree began in 2020, its shares have surged more than 3,000%, bolstered by the rising value of the cryptocurrency. Strategy currently holds approximately $54 billion in Bitcoin.Several other companies and new entities are now following Saylor’s approach to give investors different ways to gain exposure to Bitcoin. Among them are firms such as Twenty-One Capital Inc., which Cantor Fitzgerald LP, Tether Holdings SA, and SoftBank Group back. Meanwhile, a subsidiary of Strive Enterprises, co-founded by Vivek Ramaswamy, is merging with Asset Entities Inc. to form a Bitcoin treasury company.In other news, Next Technology Holding Inc. shares soared more than 600% on Friday after the Beijing-based software company announced that it had substantially upped its Bitcoin holdings from 833 BTC to 5,833 BTC, causing volatility halts in the stock.Coinbase launches 24/7 Bitcoin and Ethereum futures trading for US InvestorsOn Friday, Coinbase Derivatives officially activated 24/7 trading for Bitcoin and Ethereum futures, becoming the first CFTC-regulated derivatives exchange to offer around-the-clock access to crypto futures contracts in the US.Coinbase first revealed the initiative in March, aiming to bridge the gap between traditional US trading hours and the global crypto market, which makes up over 75% of worldwide trading volume. The exchange will provide both nano and large-sized contracts.Coinbase’s latest offering lets U.S. investors trade, hedge, and manage exposure around the clock, matching the nonstop nature of crypto markets. The exchange has built its infrastructure to support this new setup, with all trades cleared through Nodal Clear, a CFTC-regulated clearinghouse that operates 24/7. Major firms like Virtu Financial help provide liquidity.While Coinbase has remained cautious about fully adopting a Bitcoin-centric strategy, the surging interest in crypto-based corporate treasuries underscores the growing allure of Bitcoin as a store of value in the corporate world.Cryptopolitan Academy: Coming Soon – A New Way to Earn Passive Income with DeFi in 2025. Learn MoreSource link

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