Coinbase, Abandon Sailor-style BTC Purchase Strategy…“Liquidity Risk Was High”

Coinbase, the largest cryptocurrency exchange in the United States, once considered adopting the Bitcoin (BTC) acquisition strategy of Michael Saylor, the founder of Strategy, but ultimately withdrew it due to liquidity risks.

Brian Armstrong, CEO of Coinbase, stated on his X that “there was a moment in the past 12 years when we also considered investing 80% of our assets in Bitcoin.” He explained that “at that time, Coinbase was an early-stage listed company with unstable cash flow, and excessive cryptocurrency holdings could lead to negative results,” explaining the reason for abandoning Saylor's BTC acquisition strategy.

Following Armstrong's remarks, Coinbase's Chief Financial Officer (CFO) Alesia Haas also expressed a stance on this decision. Haas explained, “Coinbase has maintained a cautious stance to avoid being in a conflict of interest situation with its customers,” and added, “However, we plan to gradually increase the proportion of cryptocurrency holdings in the future.”

The industry sees Coinbase's decision as a part of risk management and long-term growth strategy as a listed company. Meanwhile, Saylor, through his large-scale BTC acquisition strategy, has established himself as a leading Bitcoin bull. The market is focused on how Coinbase will expand its cryptocurrency assets in the future.