Coinbase Invests in Bitcoin, But Refutes Treasury Strategy Allegations

Coinbase has adopted a unique approach to holding bitcoin on its corporate balance sheet, distinct from the bitcoin-centric strategy of MicroStrategy. During the company's Q1 2025 earnings call, CFO Alesia Haas disclosed that Coinbase had purchased $150 million in cryptocurrency, primarily bitcoin, increasing its long-term investment portfolio to $1.3 billion, which accounts for 25% of its net cash. Haas stressed that Coinbase's strategy is that of an operating company that invests in the cryptocurrency space, rather than a firm that ties its corporate identity to holding bitcoin. CEO Brian Armstrong noted that while the company considered accumulating a large amount of bitcoin in its early days, it was deemed too risky due to the volatility of the cryptocurrency market. Now, as a mature company, Coinbase is allocating its operational profits to invest in crypto assets, similar to how a commodity firm accumulates raw materials. This approach is more aligned with sector-specific capital recycling than a straightforward bet on bitcoin. The purchase was not highlighted in the company's shareholder letter and only came to light in response to a retail shareholder's inquiry. Armstrong emphasized that Coinbase's investment in bitcoin is a natural byproduct of its conviction in the cryptocurrency space and its operational alignment, rather than a publicity stunt or an attempt to signal a broader conviction to the market. For Armstrong, holding bitcoin is an integral part of Coinbase's role in the cryptocurrency ecosystem, rather than a treasury strategy or an activist bet.