Coinbase CEO: Following Strategy’s Bitcoin Reserve Strategy is “Too Risky”

Mars Finance News, on May 12, Coinbase CEO Brian Armstrong revealed that the crypto trading platform had considered investing 80% of its balance sheet in Bitcoin, but abandoned the idea due to concerns that it might "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 believed that Bitcoin's volatility meant an aggressive strategy was too risky, especially in Coinbase's early stages when key milestones needed to be reached to unlock additional funding rounds. "If our runway suddenly shortened from 18 months to 12 months, or even 10 months, it could completely destroy the company," Armstrong said. He explained that when Coinbase was a startup, executives made a "conscious choice" about risk, as a significant BTC price drop at the wrong time could affect the trading platform's growth. Nevertheless, Armstrong emphasized that the company does hold Bitcoin on its balance sheet, with about 25% of its net cash currently holding cryptocurrency. "We won't invest 80% in it, and I think that would be too risky," he added.