10-5-2025 – Brian Armstrong, the co-founder and chief executive of Coinbase Global Inc., the United States’ foremost cryptocurrency exchange, disclosed that the company once grappled with the allure of plunging heavily into Bitcoin, inspired by the audacious strategy championed by Michael Saylor. Speaking during a video discussion on the X social network on Friday, Armstrong admitted that over the past 12 years, there were fleeting moments when Coinbase contemplated allocating a staggering 80% of its balance sheet to Bitcoin. Yet, the San Francisco-based firm ultimately rejected this high-stakes manoeuvre, deeming it a perilous gamble that could have jeopardled financial ruin for the then-nascent startup. “We chose to temper ambition with caution,” Armstrong reflected, underscoring the decision to safeguard the company’s liquidity.
This measured approach has not dulled Coinbase’s appetite for cryptocurrency. According to its latest shareholder letter, released on Thursday, the exchange bolstered its investment portfolio with $153 million in digital assets—predominantly Bitcoin—in the first quarter. Its crypto holdings now stand at an impressive $1.3 billion, with Bitcoin forming the lion’s share. Alesia Haas, Coinbase’s Chief Financial Officer, who joined Armstrong in the X conversation, emphasised that the company is committed to expanding its crypto reserves. However, she was quick to clarify that Coinbase has no intention of rivalling its own customers, who actively trade and invest in digital currencies. “Our growth in this space will be strategic and deliberate,” Haas assured.
The broader crypto landscape has been electrified by Saylor’s blueprint, which has seen companies like Strategy amass Bitcoin—currently valued at $54 billion—through equity and debt sales, betting on the cryptocurrency’s meteoric rise to propel share prices. MicroStrategy’s stock has soared over 3,000% since it began its Bitcoin acquisition spree in 2020. This model has sparked a frenzy among diverse players, from Bitcoin miners to newly minted public firms backed by crypto titans, offering investors an array of financial instruments, from convertible bonds to preferred stocks, to gain exposure to Bitcoin’s volatility.
Recent developments highlight the strategy’s growing appeal. An affiliate of Cantor Fitzgerald LP, in collaboration with Tether Holdings SA and SoftBank Group, has launched Twenty One Capital Inc., a firm mirroring Saylor’s approach. Meanwhile, a subsidiary of Strive Enterprises Inc., co-founded by Vivek Ramaswamy, is merging with Nasdaq-listed Asset Entities Inc. to create a Bitcoin-focused treasury company. On Friday, Next Technology Holding Inc., a Beijing-based software firm, saw its shares skyrocket by over 600% in US trading, halting due to volatility, after revealing it had boosted its Bitcoin holdings from 833 to 5,833 coins.
Coinbase’s restraint, juxtaposed against this feverish rush, paints a portrait of a company navigating the crypto frontier with a blend of ambition and sobriety, determined to thrive without risking its foundation.
