Weekly Bitcoin acquisitions by Coinbase continue
Coinbase, one of the 110 largest US public companies, has made a significant move by announcing a new strategy involving Bitcoin purchases. The financial giant, which joined the US S&P 500 index in mid-May, has been purchasing Bitcoin weekly.
In contrast to some other companies like MicroStrategy, Tesla, Block, or Rumble, Coinbase's investment strategy in Bitcoin is less aggressive. However, the company's CEO, Brian Armstrong, sees Bitcoin as a potential next reserve asset of the world, indicating a steady commitment to the digital currency.
Coinbase's Bitcoin holdings have been growing steadily. As of the end of the first quarter, the company held 9,267 BTC. Since then, the company has been purchasing $500,000 worth of Bitcoin weekly, a move that could significantly increase its Bitcoin holdings.
Interestingly, despite Coinbase being founded in 2012, it currently holds a Bitcoin balance smaller than that of Metaplanet, a Japanese hotel company. Metaplanet, which began its Bitcoin strategy later, has built up a Bitcoin balance of 12,345 BTC.
MicroStrategy, on the other hand, holds 592,345 BTC, worth over $60 billion, making it the largest Bitcoin holder among the companies mentioned. MicroStrategy was the first to buy Bitcoin in August 2020 and has since seen its stock rise by over 3,000%.
The significance of Coinbase's weekly Bitcoin purchases is yet to be determined, as we wait for the report for the second quarter. However, the move is being observed as a potential success model for a Bitcoin-focused strategy.
In the past, Coinbase considered pursuing a more aggressive Bitcoin strategy like MicroStrategy but decided against it due to risks. However, with the support of the US government and the growing acceptance of Bitcoin, the risks associated with Bitcoin investments may be diminishing.
The success of Coinbase's new strategy will undoubtedly be a topic of interest in the coming months. As the company continues to invest in Bitcoin, it will be interesting to see how its Bitcoin holdings compare to those of other companies and how this strategy contributes to the company's overall growth.
