Coinbase Hesitates on Aggressive Bitcoin Strategy: Why Risk Concerns Prevail

Coinbase, the largest US cryptocurrency exchange, contemplated allocating 80% of its balance sheet to Bitcoin in the past 12 years. However, CEO Brian Armstrong ultimately decided against a Michael Saylor-like strategy due to concerns about financial stability and potential threats to the company’s core business. He revealed this decision on May 9th. According to Bloomberg, Coinbase aims to protect its exchange operations by maintaining a balanced approach to Bitcoin holdings. This choice reflects the company’s recognition of Bitcoin’s volatility while emphasizing market infrastructure provision over speculative investment.