Coinbase CEO Brian Armstrong disclosed that the exchange contemplated allocating 80% of its balance sheet to Bitcoin but opted against it due to perceived risks that could jeopardize the company. In a Q&A session, Armstrong explained that the volatility of Bitcoin was a significant concern, especially in Coinbase's early days when achieving key milestones was crucial for securing funding. He emphasized that a drastic decrease in Bitcoin's price could severely impact the company's growth prospects. Currently, Coinbase holds about 25% of its net cash in crypto, amounting to $1.3 billion in holdings, primarily Bitcoin, reflecting a cautious but significant investment approach. Aside from Armstrong, CFO Alesia Haas stated that Coinbase's main focus is not on growing an investment portfolio, as the firm prioritizes developing new products and onboarding more users to the crypto space. Despite the conservative stance on reserves compared to other firms like Strategy, which holds substantial Bitcoin assets, Armstrong reassured plans to increase Coinbase's crypto holdings in the future.

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