In a recent disclosure, Coinbase Global Inc., the leading cryptocurrency exchange in the U.S., addressed its previous considerations regarding large-scale Bitcoin acquisitions. CEO Brian Armstrong shared during a dialogue on the X platform that the company contemplated allocating up to 80% of its balance sheet to Bitcoin. However, after thorough evaluation, Coinbase determined that this strategy carried significant risks, particularly for a startup reliant on maintaining adequate cash flow.
Armstrong emphasized that such a major investment could jeopardize the company’s financial stability, potentially resulting in dire consequences, including insolvency. Despite these cautionary assessments, Coinbase remains committed to digital assets. In its latest shareholder letter, the firm reported a purchase of $153 million in cryptocurrency, predominantly Bitcoin, during the first quarter. As it stands, Coinbase’s total crypto holdings are valued at approximately $1.3 billion, reaffirming its strategic approach to asset management in the evolving cryptocurrency landscape.
Source: https://en.coinotag.com/breakingnews/coinbase-reconsiders-michael-saylors-bitcoin-buying-strategy-amid-risk-concerns/