MicroStrategy’s Model Tempted Coinbase, But Risk Held It Back

While MicroStrategy has become synonymous with corporate Bitcoin hoarding, Coinbase chose a different path.

CEO Brian Armstrong recently revealed that the crypto exchange considered following in Michael Saylor’s footsteps by loading up its balance sheet with BTC—but ultimately decided the risk wasn’t worth it.

Armstrong admitted there were moments over the past decade when the team seriously debated putting a massive portion—up to 80%—of company funds into Bitcoin.

But as a young, publicly listed firm navigating regulatory scrutiny and volatile markets, Coinbase prioritized resilience over bold bets. “We made a choice to manage risk,” Armstrong said.

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Instead of going all-in, Coinbase took a more measured route. The exchange still holds over $1.3 billion in crypto assets, with $153 million worth added in Q1 alone, most of it in Bitcoin. CFO Alesia Haas confirmed the firm remains committed to building its crypto treasury but has no interest in directly competing with its user base.

Meanwhile, other companies have leaned into MicroStrategy’s model. Japan’s Metaplanet, often dubbed “Asia’s MicroStrategy,” has reportedly outperformed Saylor’s firm in BTC returns. A growing number of miners and small-cap firms are also adopting this aggressive accumulation strategy, often financing their purchases through equity or debt sales.

As Bitcoin’s price continues to climb, the divide between high-risk accumulation and conservative treasury management is reshaping how institutions approach digital assets.

Alexander Stefanov