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- Coinbase is now buying Bitcoin weekly as the price nears a new all-time high.
- CEO Brian Armstrong urges long-term commitment to Bitcoin amid rising market momentum.
- Coinbase shifts focus back to Bitcoin after years of expanding altcoin listings.
Coinbase has stepped up its Bitcoin acquisition efforts, with CEO Brian Armstrong confirming that the company is now buying the cryptocurrency every week. The shift is because Bitcoin is approaching an all-time high, with its current price at 107,363 dollars at the time of writing, as the CoinGecko data indicates.
Armstrong has not been shy about encouraging crypto market participants to take long positions in Bitcoin, which supports Coinbase’s increased confidence in the long-term value of this cryptocurrency. As the company is spending its existing reserves to acquire Bitcoin worth $995 million, it has become the tenth-largest corporate investor in the asset globally.
Although the purchase has yet to beat other companies, such as MicroStrategy, Tesla, and Metaplanet, the choice of buying Bitcoin in weekly increments implies the strategic approach of reinforcing the supplies in the Treasury. The frequency of the transactions also reflects a change in Coinbase’s strategy toward digital assets when there is new confidence in the market.
Coinbase’s Long-Term Bet Marks a Shift in Crypto Strategy
The current approach implemented by Coinbase is a drastic change from the exchange’s inception days when it exclusively catered to Bitcoins and overlooked other altcoins. Armstrong had earlier, in another interview, ruled out cryptocurrencies such as Ripple and Stellar as a distraction since Bitcoin was way ahead of other digital currencies.
That story started to change in 2016 with Coinbase’s listing of Ethereum. Two years later, the platform was extended even more, this time by supporting ERC-20 tokens. In 2021, Coinbase added almost a hundred new tokens in a year, which attracted the disapproval of Bitcoin maximalists who stated that the company was pursuing hype in the market.
Nevertheless, Coinbase has stuck to its multi-asset business model, but the company has not abandoned its faith in Bitcoin since it continues to buy it regularly. Armstrong’s recent words and the company’s purchasing trend indicate sharpened interest in Bitcoin as it is knocking at new price records.
Coinbase’s buying of Bitcoins at a pace of one week to one month, combined with CEO Brian Armstrong’s bullishness, gives a clue of a strategic shift towards long-run accumulation. With Bitcoin getting close to a new high, the company is investing further in the asset, a move that indicates high hope for the asset’s future direction.
Also Read: Bank of America Says Bitcoin Could Be as Disruptive as the Printing Press
