Coinbase CEO Brian Armstrong reveals that the exchange is steadily acquiring Bitcoin every week, indicating that many believe it is an early stage in the Treasury efforts.
Armstrong shared the update on June 27th, saying that Coinbase is adopting a “long Bitcoin” strategy. However, he stopped checking whether these acquisitions were expressly intended to form a company’s Bitcoin Reserve.
The announcement comes shortly after Bitcoin Magazine CEO David Bailey publicly encouraged Coinbase to establish a formal Bitcoin Treasury Ministry.
Is Coinbase adopting Bitcoin Ministry of Finance’s move?
Although Armstrong did not disclose the scope or purpose of their weekly purchases, the timing sparked speculation that it could be approaching a company’s playbook, such as the famous strategy (previously micro-strategic strategy), which converted a significant portion of its balance sheet to Bitcoin.
This would mark an incredible development given that Coinbase has previously resisted all-in with Bitcoin.
Armstrong previously admitted that the company had discussed allocating the majority of its balance sheet to Bitcoin, but ultimately chose not to do so. At the time, executives felt the move was too dangerous and could have volatile the company’s finances during previous stages of growth.
Still, recent movements in the corporate world suggest that emotions may be changing. Several American companies, including Trump Media and Technology Group, Semler Scientific and Gamestop, are taking steps to integrate Bitcoin into their financial strategy.
However, market observers warn that increasing numbers of companies accept this strategy pose a major risk to the industry.
In a recent report, Coinbase’s Head of Research David Duon warned that this could create structural imbalances in the market.
He said that as more public companies stockpile Bitcoin, volatility across the companies involved and the crypto ecosystems could increase. And if these large company holders are forced to sell under market pressure, they could cause a ripple effect across trading platforms and investor portfolios.
Coin’s new ass
The discussion about the Bitcoin Treasury move comes as crypto exchange coin stocks surged to a new high of $369.21, a level not seen since the November 2021 peak.
In particular, after-hours trading has made the stock even more valuable to $375.25, according to data from Google Finance.
This milestone coincides with wider pro-crypto sentiment in the US, with investors increasingly relying on digital assets and crypto-related stocks as a hedge against global instability.
As investors’ appetite for exposure to the crypto market has increased, so has interest in companies like Coinbase, which offer indirect exposure without direct tokenholdings volatility.