Coinbase Bitcoin Holdings Rival Those of Cryptocurrency Creator Satoshi Nakamoto: Arkham
Coinbase, the leading cryptocurrency exchange in the United States, has recently revealed that it is holding a staggering $25 billion worth of Bitcoin in its reserves. This amount rivals the holdings of Bitcoin’s mysterious founder, Satoshi Nakamoto.
According to a post by Arkham Intelligence on Saturday, Coinbase is estimated to hold around 36 million wallets that contain approximately $25 billion worth of Bitcoin. The largest identified cold wallet alone holds about 10,000 Bitcoin, which is currently valued at around $265 million.
While Arkham’s estimate is solely based on the wallets connected to Coinbase, the company suggests that this amount is comparable to what is believed to be held by Bitcoin’s elusive founder. In a tweet, Arkham declared, “This [amount] makes Coinbase the largest Bitcoin entity in the world on Arkham, with almost 5% of all BTC in existence.”
Satoshi Nakamoto’s true identity remains unknown even after 15 years since the release of the Bitcoin white paper. Similarly, the exact magnitude of Nakamoto’s Bitcoin holdings remains a mystery. It is estimated that between January and July 2009, when Bitcoin’s value was less than a penny, Nakamoto may have mined over 1 million BTC, which would be worth more than $26 billion at today’s value. However, there has been no definitive verification of Nakamoto’s ownership of these wallets.
Trading in Bitcoin and Bitcoin pairs forms a significant portion of Coinbase’s trading volume. In its most recent quarterly earnings report, Coinbase stated that Bitcoin trading accounted for 40% of its total volumes and approximately 39% of its transaction revenue.
It should be noted that Arkham’s estimate of the wallets linked to Coinbase may not provide a complete figure, considering the exchange’s disclosed financials. In its latest 10-Q filing with the Securities and Exchange Commission (SEC), Coinbase reported holding $60.7 billion in customer assets and liabilities in Bitcoin.
Coinbase’s significant Bitcoin reserves demonstrate its dominance in the market and its pivotal role in the cryptocurrency space. As the exchange continues to expand its offerings and attract more users, its holdings are likely to represent an increasingly sizable portion of the overall Bitcoin market.
