Really, right now, Coin base just embarrasses himself by not buying Bitcoin and making foolish buybacks.
Coinbase just had a bad quarter. After reporting disappointing third quarter earnings figuresthe stock fell by more than 10%. To instill confidence, Coinbase has a Share buyback worth $1 billion. But that also flopped, while the shares barely moved.
This whole debacle just shows that Coinbase is foolishly ignoring the obvious strategy here: buying bitcoin.
Imagine if, instead of buying back stock, Coinbase puts $1 billion into bitcoin for its corporate reserves. That would have sent a real message. It would show that they have a role in the game and truly believe in the future of Bitcoin and crypto.
Let’s be clear: Coinbase should be all-in on Bitcoin’s upside. This is the industry they pioneered! Yet here we are in 2024 and Coinbase will not follow the proven Bitcoin reserve model that is literally flaunted to their faces by MicroStrategy.
Look, I’m not a financial engineering expert telling publicly traded companies what to do, but it’s just too obvious for crypto companies right now.
MicroStrategy started buying Bitcoin in 2020. And look what happened: their market cap now exceeds that of Coinbase! This software company, with 1/10th of Coinbase’s revenue, has soared past the OG Bitcoin and crypto exchange. All thanks to stacking sats.
How embarrassing for Coinbase! They have been around since 2012, when Bitcoin was worth $5. Imagine if they went all-in on BTC back then. But it’s still not too late.
No more wasting money on stock buybacks or lame projects. The solution is to stare Coinbase straight in the face: just keep stacking sats!
It’s painfully obvious at this point. Any self-respecting Bitcoin and crypto company should keep Bitcoin on its balance sheet. It aligns interests with shareholders and strengthens credibility.
So wake up, Brian! No more excuses. Coinbase literally owes its existence to Bitcoin. It’s time to finally go all in.
This article is a To take. The opinions expressed are solely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.