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Coinbase, one of the world’s largest cryptocurrency trading platforms, decided not to invest heavily in cryptocurrency. CEO Brian Armstrong explained Friday why his company rejected the Bitcoin strategy, which sent competitor Strategy’s value soaring by 3,000%.
In a recent video talk, Armstrong said the cryptocurrency exchange had thought about following Michael Saylor’s Bitcoin-focused treasury plan several times over the past 12 years. The company chose to protect itself from risk, worried that a big Bitcoin bet might have put the whole company in danger.
“There were definitely moments where we thought, man, should we put 80% of our balance sheet into crypto — into Bitcoin specifically,” Armstrong said. “We made a conscious choice about risk.”
The decision marks a stark contrast to Strategy’s approach. Since 2020, Strategy has bought about $54 billion in Bitcoin, which has made its stock price jump over 3,000%. The company now owns about 555,000 Bitcoin, more than any other company in the world.
Coinbase CFO Alesia Haas said another reason for their choice was to stay on good terms with customers. The company didn’t want to seem like it was competing with its own users who trade crypto, especially while supporting trading across numerous digital assets.
“Rest assured, we are not stopping there,” Haas said, hinting that Coinbase will keep purchasing crypto cautiously.
Even with its conservative stance, Coinbase has built substantial crypto holdings. The company bought $153 million in digital assets in early 2025, primarily Bitcoin. It now holds approximately $1.3 billion in crypto, including 9,480 Bitcoin worth about $988 million today, making it the ninth-largest corporate Bitcoin holder.
Instead of betting big on Bitcoin, Coinbase has invested heavily in market infrastructure. The company recently bought the derivatives platform Deribit for $2.9 billion, the biggest deal of its kind. The platform processed over $1 trillion in trading volume in 2024.
The acquisition gives Coinbase dominance in crypto derivatives markets, where it previously had limited presence through its Bermuda-based platform. The company also launched 24/7 Bitcoin and Ethereum futures trading for U.S. investors.
Meanwhile, more companies are following Saylor’s example. According to recent data, 193 publicly traded companies now hold Bitcoin on their balance sheets, a 200% increase since early 2025.
Some companies have seen dramatic market responses to Bitcoin acquisitions. Next Technology Holding’s stock rose 700% after increasing its Bitcoin holdings from 833 to 5,833 BTC, triggering market volatility halts.
