Coinbase Rejects 80% Bitcoin Treasury Approach; Holds $1.3B in Crypto as Dell Declines Bitcoin Proposal

Coinbase considered adopting a Bitcoin-heavy treasury strategy similar to that of MicroStrategy, which involved allocating up to 80% of its balance sheet to Bitcoin. According to CEO Brian Armstrong, the company discussed this approach multiple times since 2012 but ultimately decided against it due to concerns about financial risk and potential threats to its operational stability.

Armstrong explained that such a strategy could have reduced the company's financial runway and jeopardized key milestones, especially during its early growth phase. He noted that excessive exposure to Bitcoin's volatility could have 'killed the company.' CFO Alesia Haas stated that Coinbase's main focus has been on developing new products and services rather than growing its investment portfolio.

Instead, Coinbase currently holds about 25% of its net cash in crypto assets. As of the first quarter of 2025, Coinbase's crypto holdings stood at $1.3 billion, with an additional $153 million added in the last quarter. This is in contrast to MicroStrategy, which holds 555,450 BTC valued at $58 billion and has paper profits of about $30 billion.

Separately, Dell has rejected a shareholder proposal to add Bitcoin to its corporate treasury.

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