Coinbase considered a Bitcoin investment strategy akin to that of Michael Saylor but ultimately opted against it due to risks to its exchange operations. CEO Brian Armstrong and CFO Alesia Haas explained their rationale in a recent Bloomberg call. Meanwhile, Coinbase has made a significant crypto investment and is expanding its presence in the derivatives market with the acquisition of Deribit for $2.9 billion, positioning itself as a leader in that sector.
In a recent report by Bloomberg, Coinbase’s CEO, Brian Armstrong, revealed that the company toyed with the idea of adopting a Bitcoin investment strategy similar to that of Michael Saylor. Over the years, Armstrong noted that there were significant considerations where putting a considerable portion of their balance sheet into Bitcoin seemed appealing. However, time and again, the firm refrained from this approach, fearing it could jeopardise the company’s crypto exchange operations.
Armstrong emphasised that pursuing such a risky Bitcoin strategy could undermine Coinbase’s cash reserves, thus threatening its viability as a competitive exchange. He stressed that the decision was a deliberate risk management choice. Alongside him in the discussion, CFO Alesia Haas pointed out another concern: they did not want to appear as competitors to their own customers regarding which cryptocurrencies might succeed in the future.
In a sign of ongoing commitment to the crypto space, Coinbase reported on May 8 that they recently made a substantial investment of $153 million in crypto assets during Q1. This investment was predominantly in Bitcoin, reaffirming their belief in the cryptocurrency despite not adopting a full Saylor-style strategy. Currently, Coinbase holds approximately 9,480 Bitcoin, valued at nearly $988 million — a hefty portion of its broader $1.3 billion crypto asset portfolio.
Armstrong’s platform is now positioned as the ninth-largest corporate holder of Bitcoin, trailing notable firms such as MicroStrategy and Tesla. Notably, the trend of companies imitating Saylor’s Bitcoin playbook is on the rise, with many either using stock or debt to fund Bitcoin acquisitions, banking on significant price appreciation to positively impact their own share valuations.
Currently, more than 100 publicly traded companies around the world are reported to hold Bitcoin. In addition, 40 exchange-traded funds (ETFs), 26 private firms, and 12 nation states have also got involved in holding this digital asset. This growing trend showcases the increasing acceptance of Bitcoin and its potential as a strategic investment.
In another significant development, Coinbase announced on May 8 its agreement to acquire the crypto derivatives platform, Deribit, for $2.9 billion. This acquisition represents the largest corporate deal in the crypto space to date and greatly enhances Coinbase’s presence in the derivatives market, which they previously accessed only through a platform based in Bermuda.
Deribit is no small player, having facilitated trading volumes exceeding $1 trillion in 2024 and boasting around $30 billion in open interest. With this acquisition, Coinbase is now touted as the “global leader” in crypto derivatives trading, a notable achievement amidst a rapidly evolving market.
