The CEO of the largest digital asset exchange in the US has reportedly revealed that Coinbase considered investing most of its cash reserve in Bitcoin (BTC).
Brian Armstrong stated that Coinbase once explored the idea of following the crypto investment strategy of Bitcoin advocate Michael Saylor, as per Bloomberg reports.
“There were definitely moments over the last 12 years where we thought, man, should we put 80% of our balance sheet into crypto – into Bitcoin, specifically.”
However, Coinbase ultimately decided against this course of action to avoid risking the company’s financial stability as a startup, potentially leading to its downfall.
“We made a conscious choice about risk.”
Backing this decision, Coinbase CFO Alesia Haas emphasized that the company aims to steer clear of appearing to hoard Bitcoin in competition with its own clients.
Although the plan for massive Bitcoin accumulation was abandoned, the latest shareholder letter indicates that the firm invested $153 million in Q1 of the current year to procure digital assets, primarily in Bitcoin. Coinbase now holds $1.3 billion in crypto.
Haas stated,
“Rest assured, we are not stopping there.”
According to Coinbase, the substantial crypto reserves were established to meet regulatory capital requirements, facilitate expanding utility, and reinforce the company’s dedication to the digital asset sector.
At the time of writing, Bitcoin is trading at $103,935.
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