Coinbase Should Be All-In on Bitcoin

This is the industry they pioneered! Yet here we are in 2024, and Coinbase won't follow the proven Bitcoin reserve model that is literally being flaunted in their face by MicroStrategy.

Coinbase announced a $1 billion share buyback in an attempt to boost its stock price. However, the strategy failed, with shares barely moving.

Instead of share buybacks, Coinbase should be using its cash to buy bitcoin and adding it to its corporate reserves. This would send a strong message and show that Coinbase is committed to the future of bitcoin and crypto.

As an industry pioneer, Coinbase should be maximizing its exposure to bitcoin's upside potential. Yet, despite MicroStrategy's success with the bitcoin reserve model, Coinbase has not followed suit.

MicroStrategy began purchasing bitcoin in 2020 and has since seen its market cap soar, surpassing that of Coinbase. This software company, with a fraction of Coinbase's revenue, has achieved remarkable growth thanks to its bitcoin holdings.

It is embarrassing for Coinbase, which has been operating since 2012, to witness a latecomer like MicroStrategy outpacing it in the bitcoin game. Had Coinbase fully embraced bitcoin earlier, it could have realized substantial gains.

Coinbase should cease wasting money on share buybacks and unimpactful projects. The solution is clear: allocate a significant portion of its cash into bitcoin and keep stacking sats.

For any self-respecting bitcoin and crypto company, holding bitcoin on its balance sheet is a no-brainer. It aligns interests with shareholders and enhances credibility.

Coinbase owes its existence to bitcoin, and it is time for the exchange to fully embrace the asset that brought it to where it is today.