#CryptoComeback Coinbase skipped $54B Bitcoin bet that sent Strategy soaring 3,000%
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 gamble
On 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 strategy
Meanwhile, 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 surge
