Really, at this point, Coinbase is just embarrassing not to buy Bitcoin and making stupid purchases.
Coinbase just had a bad quarter. After reporting disappointing Q3 earnings, its stock fell more than 10%. To boost confidence, Coinbase announced a $1 billion share buyback. But that’s down, too, with slower stocks.
This whole issue just shows that Coinbase is stupidly ignoring the obvious strategy here – buying bitcoin.
Instead of buying sharebacks, imagine if Coinbase put $1 billion in bitcoin to get its corporate capital. That would send a real message. It will show that they have skin in the game and really believe in Bitcoin and the future of crypto.
Let’s be clear – Coinbase should be perfect for Bitcoin tracking. This is an industry they are pioneering! Well here we are in 2024, and Coinbase will not follow the proven Bitcoin model that is literally being flashed in their face by MicroStrategy.
Look, I’m not a financial engineering expert to tell public companies what to do, but it’s very visible in crypto companies at the moment.
MicroStrategy started buying Bitcoin in 2020. And look what happened – their market cap now surpasses Coinbase’s! This software company, which has 1/10 the revenue of Coinbase, has overtaken the OG Bitcoin and crypto exchange. All thanks to stacking sats.
Shame on Coinbase! They’ve been around since 2012, when Bitcoin was $5. Just imagine if they’d gone all in on BTC back then. But it’s still not too late.
No more wasting money on share buybacks or lame projects. The solution is staring Coinbase right in the face – keep packing sats!
It’s painfully obvious at this point. Any self-respecting Bitcoin and crypto company must hold Bitcoin on its balance sheet. It aligns interests with shareholders and strengthens credibility.
So wake up, Brian! No more excuses. Coinbase really owes its existence to Bitcoin. It’s finally time to check in.
This article is a Take it. The views expressed are entirely those of the author and do not reflect those of BTC Inc or Bitcoin Magazine.
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