Coinbase considered Saylor-like Bitcoin strategy before opting out: Bloomberg

Coinbase considered adopting a Bitcoin investment strategy similar to Michael Saylor's-allocating a large portion (up to 80%) of its balance sheet into Bitcoin-on multiple occasions since its founding in 2012.

However, the company ultimately decided against this approach due to the high risks involved, particularly the potential to jeopardize its cash position and threaten the survival of its crypto exchange business.

CEO Brian Armstrong explained that they made a conscious choice to avoid such risk, noting that putting so much capital into Bitcoin could have "killed" the firm’s core operations.

CFO Alesia Haas also added that Coinbase did not want to compete directly with its customers by taking significant risk on which cryptocurrencies would outperform.

Instead, Coinbase has maintained a more balanced and diversified financial strategy, holding a mix of crypto assets and fiat reserves to ensure operational stability amid market volatility.

While Coinbase remains bullish on Bitcoin and has continued to increase its crypto holdings-reportedly holding about 9,480 Bitcoin worth nearly $1 billion as part of $1.3 billion total crypto assets-it has avoided the concentrated "all-in" approach that MicroStrategy, led by Michael Saylor, has famously pursued.

This cautious stance contrasts with many other companies that have adopted Saylor’s aggressive Bitcoin accumulation strategy, often funding purchases through stock etc.

Coinbase’s decision reflects its unique position as a crypto exchange that must balance financial flexibility, regulatory compliance, and the interests of its customers.

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