Coinbase Rejects Major Bitcoin Treasury Strategy Citing Business Risks

Coinbase CEO Brian Armstrong revealed that the company considered adopting a Bitcoin-heavy treasury strategy similar to MicroStrategy's but ultimately rejected it due to concerns it could jeopardize liquidity and compete with its customers. Despite this, Coinbase remains a significant Bitcoin holder, with nearly $1 billion in BTC holdings, making it the ninth-largest corporate holder worldwide. Armstrong also addressed the growing interest from traditional banks in issuing their own stablecoins, cautioning that stablecoins benefit from interoperability and network effects, and urged banks to partner with existing stablecoins like USDC rather than launching competing assets. Coinbase's acquisition of crypto derivatives platform Deribit for $2.9 billion marks a major expansion into global crypto derivatives. The company's cautious approach reflects a strategy to manage risk while supporting a consolidated stablecoin ecosystem powered by collaboration rather than fragmentation. Coinbase's Q1 earnings missed expectations, though its stock showed mixed trading following these announcements.