Coinbase becomes the largest Bitcoin holder with $25 bln in BTC reserves

Posted: September 25, 2023

• It was found Coinbase currently owns 5% of Bitcoin in circulation.
• Bitcoin on exchanges has declined to almost a six-year low.

According to recent data from Arkham Intelligence, Coinbase has been recognized as the world’s largest Bitcoin [BTC] entity. Just how much is its holdings?

How much are 1,10,100 BTCs worth today

Analyzing the Coinbase Bitcoin holdings

Arkham Intelligence has reported the discovery of millions of Bitcoin deposits and holding addresses linked to Coinbase. The data further revealed that these addresses collectively contained over 1 million Bitcoins, with a total estimated value exceeding $25 billion.

Also, the holdings in these wallets accounted for 5% of the entire circulating Bitcoin supply. This solidified Coinbase’s position as the largest entity in the Bitcoin ecosystem.

Additionally, Arkham Intelligence pointed out that the actual volume of Bitcoin held by the exchange could potentially be even higher, given the presence of unlabeled addresses associated with Coinbase that have yet to be fully accounted for.

Bitcoin’s current supply and market cap

As per data provided by CoinMarketCap, the current circulating supply of Bitcoin stands at more than 19.4 million. At the time of this report, the corresponding market capitalization has surged past $518 billion, constituting nearly half of the total cryptocurrency market capitalization.

When factoring in Coinbase’s extensive holdings, it becomes evident that Coinbase possesses a remarkable 5% of the market value of almost half of the entire cryptocurrency market.

BTC supply on exchanges

Despite Coinbase’s substantial holdings and its position as one of the world’s largest exchanges, there has been a significant decrease in the supply of Bitcoin on exchanges.

According to data from Santiment, the amount of BTC held on exchanges was approximately 1.1 million as of this writing. Also, a closer examination of the chart reveals not only a decline but also a record low in nearly six years. 

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Additionally, this low supply level has not been seen since around November 2018. The current data suggests that exchanges are currently holding approximately 5.8% of the total Bitcoin supply.

Source: Santiment

This decline in BTC supply on exchanges could be interpreted as a bullish signal. But it may also be influenced by regulatory uncertainties surrounding Coinbase and other exchanges.