Coinbase Reveals Cautious Approach, Avoids Bitcoin Bet Like Saylor’s Strategy
By: cryptosheadlines|2025/05/10 11:30:17
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Coinbase rejected a high-risk Bitcoin strategy to protect its financial stability as a growing startup.Coinbase continues to build its crypto holdings but avoids adopting Saylor’s aggressive Bitcoin model.Coinbase expands 24/7 trading for Bitcoin and Ethereum futures to meet global market demand.Coinbase Global Inc. revealed it had considered a Bitcoin investment strategy like that of Strategy’s founder, Michael Saylor. The plan involved moving up to 80% of the company’s balance sheet into Bitcoin. However, Coinbase abandoned the idea due to concerns about startup survival and risk exposure.JUST IN: Coinbase considered Saylor’s Bitcoin Strategy, but decided against it – Bloomberg“There were definitely moments over the last 12 years where we thought, man, should we put 80% of our balance sheet into... Bitcoin specifically,” Brian Armstrong, Coinbase co-founder and... pic.twitter.com/pmNQnziMsD— Bitcoin Archive (@BTC_Archive) May 9, 2025The company prioritized financial caution. Executives determined that such a move could have jeopardized Coinbase’s solvency in its early years. As the crypto market remained volatile, leadership focused on building sustainable financial practices. Coinbase chose to grow its crypto exposure more conservatively.Investment Continues at Measured PaceEven without an aggressive Bitcoin strategy, Coinbase continues to have big crypto holdings. The company bought $153 million in crypto in Q1 2025. The majority of that investment was into Bitcoin. Coinbase currently has $1.3 billion worth of cryptocurrency as stated in its latest report.The company emphasized that it will continue increasing its holdings. However, the pace will remain measured. The goal is to maintain trust with investors while ensuring operational safety.Coinbase made it clear it did not wish to compete head-to-head with its customers as many of its users invest in digital assets such as Bitcoin. By being neutral, Coinbase avoids conflicts and maintains business relationships.Other Firms Follow Saylor’s ModelWhile Coinbase avoided the high-stakes strategy, others embraced it. Strategy has amassed $54 billion in Bitcoin since 2020. Its stock surged over 3,000% as Bitcoin prices climbed.A number of companies have followed the same path. These firms raise capital through debt and equity sales to buy Bitcoin. Their goal is to mirror Strategy’s performance and attract crypto-focused investors.New entrants like Twenty-One Capital Inc. are emerging. That firm is backed by Cantor Fitzgerald LP, Tether Holdings SA, and SoftBank Group. Other examples include a merger between a Strive Enterprises Inc. subsidiary and Asset Entities Inc., forming a new Bitcoin treasury firm.Coinbase Expands Trading AccessOn Friday, Coinbase Derivatives launched 24/7 trading for Bitcoin and Ethereum futures in the U.S. It became the first CFTC-regulated exchange to offer nonstop crypto futures access in the country.24/7 trading for futures is here in the US.Trade Bitcoin and Ethereum futures on your time — any hour, any day. The market doesn’t sleep, and now, neither do your opportunities.Next up: Perpetual futures. Stay tuned. pic.twitter.com/q4OXMjr8pn— Coinbase Futures (@cbFutures) May 9, 2025The move aims to match global crypto market hours. Coinbase now offers both nano and standard contracts. Trades are cleared through Nodal Clear, a CFTC-regulated clearinghouse. Liquidity support comes from major firms such as Virtu Financial. Coinbase continues to build services that match crypto’s around-the-clock nature while avoiding risky treasury moves.Source link
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