Key Takeaways
- Coinbase is purchasing bitcoin weekly, prompting speculation about a corporate treasury move.
- COIN stock has hit a new all-time high, reflecting growing investor interest in bitcoin exposure through equities.
- Coinbase's Head of Research cautions that increased corporate bitcoin accumulation could heighten market volatility and risk.
Coinbase CEO Brian Armstrong announced that the exchange is purchasing bitcoin weekly, raising questions about whether the company is moving toward a formal bitcoin treasury approach.
Armstrong described Coinbase’s stance as a “Long Bitcoin” strategy but did not clarify if these acquisitions are intended to become a corporate reserve.
This update followed public calls from Bitcoin Magazine CEO David Bailey for Coinbase to establish a formal bitcoin treasury.
Industry context and corporate precedent
Armstrong’s announcement arrives as other public companies, such as Strategy (formerly MicroStrategy), Trump Media and Technology Group, Semler Scientific, and GameStop, have added bitcoin to their balance sheets.
While Coinbase previously hesitated to adopt a treasury approach, Armstrong had admitted that concerns over financial stability influenced their earlier decision to avoid allocating a significant portion of the company’s balance sheet to bitcoin.
Risks of corporate bitcoin holdings
David Duong, Coinbase’s Head of Research, warned that the trend of companies accumulating bitcoin could introduce structural risks to the market. He stated in a recent report:
“As more public companies stockpile bitcoin, volatility could increase for the firms involved and the entire crypto ecosystem. If these large corporate holders are forced to sell under market pressure, it could trigger ripple effects across trading platforms and investor portfolios.”
COIN stock reaches new heights
The speculation around Coinbase’s bitcoin strategy coincides with COIN stock hitting $369.21, surpassing its November 2021 peak. After-hours trading pushed the price to $375.25. As interest in bitcoin and related equities rises, investors increasingly turn to companies like Coinbase for indirect exposure to the asset.
For more on Coinbase’s historical and current bitcoin holdings, see the Coinbase BTC holdings chart.
