Coinbase shocked crypto enthusiasts by rejecting what could have been a massive Bitcoin investment strategy. The largest U.S. crypto exchange considered following in Michael Saylor’s bold footsteps by dumping up to 80% of its balance sheet into Bitcoin – but ultimately chickened out. CEO Brian Armstrong confirmed the company had multiple internal discussions about going all-in on Bitcoin over the past 12 years.
Risk management priorities guided the final verdict. The exchange decided that putting most of its eggs in the Bitcoin basket could threaten its core business stability. Apparently, wild crypto market swings and the need for actual cash reserves won out over Bitcoin maximalism. Who would’ve thought a crypto exchange would be so… traditional?
The decision comes at an interesting time, with institutional investors seemingly going the opposite direction. A recent Coinbase and EY-Parthenon survey found that over 75% of institutional investors plan to beef up their digital asset holdings in 2025. Even more telling, 84% are already dabbling in stablecoins or eyeing them hungrily. Many are drawn to fiat-backed stablecoins as they offer the stability of traditional currency with the efficiency of blockchain technology.
Meanwhile, Coinbase just witnessed its largest Bitcoin exodus of the year. On May 9, 2025, a whopping $1 billion worth of Bitcoin (9,739 BTC) fled the exchange in a single day. This happened while Bitcoin was living its best life above $103,600. The massive outflow suggests institutional players are snatching up Bitcoin like it’s the last slice of pizza at a party.
The company’s conservative stance marks a sharp contrast to firms like MicroStrategy, which haven’t been shy about loading up on Bitcoin. Industry observers are calling Coinbase’s move risk-averse, but maybe they’re just being grown-ups about it.
With regulatory uncertainty looming and the need to keep the lights on, Coinbase opted for a diversified treasury approach that wouldn’t give their accountants heart attacks.
Let’s face it – sometimes boring is better. While crypto bros might call them cowards, Coinbase seems more interested in staying in business than gambling on Bitcoin’s wild ride.
