Coinbase Purchases $150 Million in Bitcoin, Total Holdings Reach $1.3 Billion
Coinbase (COIN) has adopted a unique approach to holding Bitcoin (BTC) on its balance sheet, distinct from strategies like that of Michael Saylor's MicroStrategy (MSTR).
- In Q1 2025, Coinbase purchased $150 million in crypto, mostly Bitcoin, increasing its long-term investment portfolio to $1.3 billion, representing 25% of net cash.
- CFO Alesia Haas emphasized that Coinbase is an operating company, not solely focused on BTC.
- CEO Brian Armstrong noted past reluctance to heavily invest in BTC due to the company's early-stage risks associated with crypto volatility.
- Current investments are a strategic allocation of operational profits into crypto assets, similar to commodity firms managing raw materials.
- The BTC purchase was not highlighted in the shareholder letter but arose during a Q&A session with retail investors.
- Armstrong reaffirmed Coinbase's commitment to crypto as integral to its operations, stating it's part of the company's role.
This approach indicates a calculated, long-term investment strategy rather than a speculative treasury pivot or market signaling.