Really, at this point, Coinbase is just embarrassing itself by not buying bitcoin and doing silly buybacks.
Coinbase just had a bad quarter. After reporting Disappointing third quarter resultsIts shares fell more than 10%. To inspire confidence, Coinbase announced a Share buybacks for $1 billion. But that also failed and the stock barely moved.
This whole debacle just shows that Coinbase is foolishly ignoring the obvious strategy here: buying bitcoins.
Instead of buying back shares, let's imagine if Coinbase invested $1 billion in bitcoin for its corporate reserves. That would have sent a real message. It would show that they have something to do with the game and that they really believe in bitcoin and the future of cryptocurrencies.
Let's be clear: Coinbase should bet on the positive side of bitcoin. This is the industry they pioneered! However, here we are in 2024, and Coinbase will not be following the proven bitcoin reserve model that MicroStrategy literally flaunts to your face.
Look, I'm no financial engineering expert to tell public companies what to do, but it's too obvious for crypto companies right now.
MicroStrategy started buying bitcoin in 2020. And look what happened: its market cap now exceeds that of Coinbase! This software company, with a tenth of Coinbase's revenue, has surpassed the OG bitcoin and cryptocurrency exchange. All thanks to satellite stacking.
How embarrassing for Coinbase! They have been around since 2012, when bitcoin cost $5. Imagine if they bet on btc back then. But it's not too late yet.
No more wasting money on stock buybacks or boring projects. The solution is in front of Coinbase: keep accumulating sats!
It's painfully obvious at this point. Any bitcoin and cryptocurrency company worth its salt should hold bitcoin on its balance sheet. Aligns interests with those of 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 out.
This article is a Carry. The opinions expressed are entirely those of the author and do not necessarily reflect those of btc Inc or bitcoin Magazine.
