## Coinbase's Bitcoin Buying Strategy: A Risky Proposition? Coinbase, the leading U.S. crypto exchange, briefly entertained a MicroStrategy-esque strategy of heavily investing in Bitcoin. However, CEO Brian Armstrong revealed the plan was scrapped due to perceived liquidity risk. Armstrong explained on X that early in Coinbase's history, the idea of allocating 80% of assets to Bitcoin was considered. Ultimately, the volatile cash flow of a newly public company combined with potential downsides of holding excessive crypto led to the decision to abandon the strategy. CFO Alesia Haas further highlighted Coinbase's conservative approach to avoid conflicts of interest with its customer base. While aggressive Bitcoin accumulation was deemed too risky, Haas indicated future plans to increase the company's cryptocurrency holdings strategically. This suggests a more measured approach than the high-risk, high-reward strategy initially contemplated. ```

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