Coinbase avoids Bitcoin overexposure, focuses on stability
Coinbase avoids Saylor-style strategy
Coinbase, the largest cryptocurrency exchange in the U.S., has revealed that it once seriously considered adopting an aggressive Bitcoin accumulation strategy modeled after Michael Saylor’s approach—one that involved allocating up to 80% of its balance sheet to BTC.
However, CEO Brian Armstrong admitted during a video conference on the social network X, as reported by Bloomberg, that such a decision could have threatened the company’s financial stability during its early startup phase. Coinbase ultimately opted for a more conservative, risk-managed approach, prioritizing sustainability over excessive speculation—despite its continued interest in digital assets.
In the first quarter of 2025 alone, Coinbase invested $153 million, primarily in Bitcoin, bringing the total value of its crypto holdings to $1.3 billion. CFO Alesia Haas emphasized that the company aims to grow its portfolio while avoiding any perceived conflict of interest with its retail and institutional clients.
A wave of institutional strategies and new BTC market entrants
Meanwhile, more companies are following in Saylor’s footsteps. MicroStrategy’s Bitcoin-centric investment model has inspired a wave of similar moves, with firms like Twenty One Capital and Next Technology Holding raising capital specifically to acquire BTC.
Acquisition of Deribit and potential crypto bank transformation
Coinbase continues to strengthen its global footprint. On May 8, the company announced a $2.9 billion agreement to acquire Deribit—one of the leading platforms for crypto derivatives. The deal consists of $700 million in cash and 11 million shares of Coinbase Class A stock. According to Greg Tusar, Vice President of Institutional Products, the acquisition will broaden Coinbase’s international reach and provide access to Deribit’s professional trading client base.
In addition, the company has confirmed that it is actively exploring the possibility of securing a federal banking license. If approved, this move would enable Coinbase to offer a full suite of traditional banking services, establishing itself as a next-generation crypto-native financial institution.
