Coinbase Possesses 5% of Bitcoin in Circulation
Coinbase possesses nearly 5% of circulating Bitcoin, valued at $25 billion, but owns only $200 million of it.
Arkham has now identified $25B of Coinbase Bitcoin reserves (~1M BTC) on chain.
This makes Coinbase the largest Bitcoin entity in the world on Arkham, with almost 5% of all BTC in existence – about as much as Satoshi Nakamoto. pic.twitter.com/7sDOczS7WT
— Arkham (@ArkhamIntel) September 22, 2023
Coinbase, a leading crypto exchange, possesses an astonishing 947,755 Bitcoin in its wallets. This data comes courtesy of blockchain intelligence agency Arkham. With the current BTC market rates, these holdings translate to a value exceeding $25 billion. Delving into the percentage of total Bitcoin owned, this massive reserve amounts to almost 5% of the Bitcoin currently in circulation. CoinGecko, a renowned coin information platform, reveals the current circulating supply of Bitcoin to be roughly 19,493,537.
Addressing The Disparity
However, it’s vital to understand the distinction between the total Bitcoin Coinbase holds and the Bitcoin the exchange actually owns. Of the massive stockpile, Coinbase’s ownership accounts for merely 10,000 BTC. When translated to monetary terms based on current market conditions, this amounts to an estimated $200 million.
Arkham’s investigation into Coinbase’s assets went deeper. The agency successfully identified 36 million Bitcoin deposit and holding addresses affiliated with Coinbase. Impressively, the largest cold wallet connected to Coinbase shelters a significant 10,000 BTC. Intriguingly, Arkham speculates there’s more to Coinbase’s BTC assets than meets the eye. The intelligence firm hints at the possibility of additional Bitcoin owned by Coinbase that remains unidentified and unlabeled, as supported by the exchange’s financial documentation.
Community Reactions and Comparisons
Such revelations about Coinbase’s Bitcoin ownership triggered diverse responses within the cryptocurrency community. A segment of the community perceives this as a cautionary tale, advocating for a withdrawal of BTC from exchanges. Their concerns stem from the potential risk of exchanges suspending withdrawals in the future. Meanwhile, others wrestle with the dilemma of storage, as the trustworthiness of cold wallets comes under scrutiny.
Shifting our focus to corporate Bitcoin ownership, one can’t ignore the mammoth holdings of business intelligence giant MicroStrategy. As of their latest earnings report released on August 1, co-founder Michael Saylor confirmed the company’s possession of 152,800 BTC. To put that in perspective, that’s a staggering value of over $4 billion at the reporting time.
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Filed under: Bitcoin - @ September 24, 2023 9:28 pm