Brian Armstrong, CEO of Coinbase, has revealed that the exchange acquires steadily Bitcoin weekly, which indicates what many believe that the early stages of an efforts for building a treasure chest could be.
Armstrong shared The update on 27 June, which states that Coinbase has adopted a “long bitcoin” strategy. However, he did not stop to confirm whether these acquisitions are explicitly intended to form a Bitcoin reserve for companies.
The announcement will be publicly shortly after Bitcoin Magazine CEO David Bailey encouraged Coinbase to set up a formal Bitcoin Treasury.
Does Coinbase take a Bitcoin Treasury Move?
Although Armstrong has not announced the scope or the goal of the weekly purchases, the timing has speculated that the company can move closer to the playbook of companies such as Strategy (formerly MicroSstrategy), which was famous to turn a significant part of his balance into Bitcoin.
This would mark a surprising development, since Coinbase has previously resisted to go all-in on Bitcoin.
Armstrong earlier allowed That the company had debated about assigning a large part of his balance to Bitcoin, but eventually chose not to do that. At the time, the managers thought that the move was too risky and the finances of the company could have destabilized during his earlier growth phases.
Nevertheless, recent movements in the business world suggest that sentiment can shift. Various American companies, including Trump Media and Technology Group, Semler Scientific and Gamestop, have taken steps to integrate Bitcoin into their financial strategies.
However, market observers have warned that the rising number of companies that embrace this strategy is a significant risk to industry.
In a recent reportDavid Duong, head of Coinbase, warned that this could cause structural imbalances in the market.
According to him, as more public companies Bitcoin stocks, volatility could increase for the companies involved and the entire crypto ecosystem. And if these large company holders are forced to sell under market pressure, these can cause wrinkle effects on trading platforms and investment portfolios.
Munt’s new ATH
The discussion about the Bitcoin Treasury movements comes when the coins from the Crypto Exchange rose to a new high point of $ 369.21, a level that has not been seen since the peak of November 2021.
In particular, after hours, trade is pushed even higher up to $ 375.25, according to Google Finance facts.
This milestone is in line with a broader pro-Crypto-sentiment in the US, where investors have increasingly turned to digital assets and crypto-related shares such as hedge against global instability.
As the hunger of the investor for exposure to the cryptomarkt grows, there is also growing interest in companies such as Coinbase, which offer indirect exposure without the volatility of direct Token holdings.