Coinbase (COIN) was once tempted by the allure of a Bitcoin strategy straight out of Michael Saylor’s playbook. The idea was simple: Put a massive chunk of their balance sheet into Bitcoin. But, despite some serious internal discussions, Coinbase chose not to take that risk. CEO Brian Armstrong admitted that there were times over the years when they seriously considered it. “There were definitely moments over the last 12 years where we thought, man, should we put 80% of our balance sheet into crypto — into Bitcoin specifically?” he told Bloomberg in a May 9 video call.
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Coinbase Plays It Safe, Avoids Big Bitcoin Bet
Armstrong explained why Coinbase stepped back from the aggressive Bitcoin buy-in. “We made a conscious choice about risk,” he said. The fear was simple: A massive Bitcoin buy could jeopardize Coinbase’s cash flow and hurt the crypto exchange’s stability. This caution wasn’t just about money. Coinbase also didn’t want to find itself competing with its own customers. By not committing a significant chunk of its assets into Bitcoin, Coinbase preserved its role as a trusted intermediary rather than an investment competitor in the market.
Coinbase Builds a Strong Bitcoin Portfolio
While Coinbase chose not to go all-in on Bitcoin, it still holds a considerable amount. The exchange owns 9,480 BTC, worth roughly $988 million at current prices. This makes Coinbase the ninth-largest corporate Bitcoin holder in the world, just behind companies like Strategy (MSTR) and Tesla (TSLA). In fact, Coinbase continues to build its Bitcoin reserves. In the first quarter of 2025, it announced a $153 million purchase of crypto assets, largely concentrated in Bitcoin. So while Coinbase isn’t following the path laid out by Saylor, it’s certainly not ignoring Bitcoin’s potential.
Is COIN Stock a Good Buy?
Coinbase’s stock currently holds a Moderate Buy rating from 22 analysts. Of these, 11 analysts have given it a Buy rating, 10 analysts have rated it as Hold, and just one analyst has issued a Sell rating. This consensus shows that, despite some skepticism, a majority of analysts remain optimistic about Coinbase’s future.
The average COIN price target is set at $256.60, reflecting an upside of 21.61% from its current price of $211.00. The highest price target from analysts reaches $400.00, suggesting significant growth potential if the market sentiment continues to favor the exchange. The lowest target is $169.00, providing a more conservative outlook should macroeconomic conditions affect the broader market or Coinbase’s business operations.
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