Really, at this point Coinbase is embarrassing itself by not buying Bitcoin and doing ridiculous buybacks.
Coinbase had a bad quarter. After reporting Disappointing third quarter earningsIts stock fell more than 10%. To instill confidence, Coinbase announced Buy back shares worth $1 billion. But that failed too, with stocks barely budging.
This whole debacle shows that Coinbase is foolishly ignoring the obvious strategy here – buying Bitcoin.
Instead of buying back shares, imagine if Coinbase invested $1 billion in Bitcoin for the company’s reserves. That would have sent a real message. It will show that they have skin in the game and truly believe in the future of Bitcoin and cryptocurrencies.
Let’s be clear – Coinbase should be all-in on Bitcoin’s upside. This is the industry they pioneered! However, here we are in 2024, and Coinbase will not be following the Bitcoin reserve model that was literally flaunted in their faces by MicroStrategy.
Look, I’m not a financial engineering expert telling public companies what to do, but it’s pretty clear for crypto companies at this point.
MicroStrategy started buying Bitcoin in 2020. And look what happened – its market capitalization has now surpassed that of Coinbase! This software company, with revenues 1/10th that of Coinbase, has surpassed the OG Bitcoin and cryptocurrency exchange. All thanks to Stacking Sats.
How embarrassing for Coinbase! It has been around since 2012, when Bitcoin was $5. Just imagine if they had bet everything on BTC at that time. But it’s not too late.
No more wasting money on stock buybacks or weak projects. The solution is to challenge Coinbase directly to its face – just keep stacking satellites!
It’s painfully obvious at this point. Any self-respecting Bitcoin and cryptocurrency company should be holding Bitcoin on its balance sheet. It aligns with shareholders’ interests and enhances credibility.
So wake up, Brian! No more excuses. Coinbase literally owes its existence to Bitcoin. It was finally time to go.
This article is a takes. The opinions expressed are entirely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.
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