Actually, at this level, Coinbase is simply embarrassing itself by not shopping for Bitcoin and doing foolish buybacks.
Coinbase simply had a nasty quarter. After reporting disappointing Q3 earnings, its inventory plunged over 10%. To instill confidence, Coinbase introduced a $1 billion share buyback. However that flopped, too, with shares barely budging.
This complete debacle simply reveals that Coinbase is foolishly ignoring the apparent technique right here — shopping for bitcoin.
As a substitute of share buybacks, think about if Coinbase put $1 billion into bitcoin for its company reserves. That will have despatched an actual message. It will present they’ve pores and skin within the sport and really imagine in Bitcoin and crypto’s future.
Let’s be clear – Coinbase needs to be all-in on Bitcoin’s upside. That is the business they pioneered! But right here we’re in 2024, and Coinbase will not comply with the confirmed Bitcoin reserve mannequin that’s actually being flaunted of their face by MicroStrategy.
Look, I’m not any monetary engineering skilled to inform public firms what to do, but it surely’s simply too evident for crypto firms at this level.
MicroStrategy began shopping for Bitcoin in 2020. And look what’s occurred — their market cap now exceeds Coinbase’s! This software program firm, with 1/tenth the income of Coinbase, has surged previous the OG Bitcoin and crypto change. All because of stacking sats.
How embarrassing for Coinbase! They have been round since 2012, when Bitcoin was $5. Simply think about in the event that they went all-in on BTC again then. But it surely’s nonetheless not too late.
No extra losing cash on share buybacks or lame initiatives. The answer is staring Coinbase proper within the face — simply maintain stacking sats!
It is painfully apparent at this level. Any self-respecting Bitcoin and crypto firm should maintain Bitcoin on its steadiness sheet. It aligns pursuits with shareholders and strengthens credibility.
So get up, Brian! No extra excuses. Coinbase actually owes its existence to Bitcoin. It is time to go all in eventually.
This text is a Take. Opinions expressed are completely the creator’s and don’t essentially replicate these of BTC Inc or Bitcoin Journal.
