According to BlockBeats, on May 12, Coinbase CEO Brian Armstrong revealed that the crypto trading platform had considered putting 80% of its balance sheet into Bitcoin but abandoned the idea due to concerns that it could 'destroy the company.' During a Q&A session with customers, executives were asked if they missed the opportunity to start accumulating BTC earlier, as the company started operating eight years before the software company Strategy.
Armstrong believes that the volatility of Bitcoin means that aggressive strategies are too risky, especially during Coinbase's early stages when it was necessary to achieve key milestones to unlock additional rounds of financing. 'If our funding runway suddenly shrinks from 18 months to 12 months, or even 10 months, that could completely destroy the company,' Armstrong said.
He explained that when Coinbase was still a startup, executives made a 'conscious choice' regarding risk, as a significant drop in BTC prices at the wrong time would affect the growth of the trading platform. Nevertheless, Armstrong emphasized that the company does hold Bitcoin on its balance sheet, currently about 25% of its net cash is held in cryptocurrency. 'We won't put 80% into it; I think that's too risky,' he added.
