Coinbase, the popular cryptocurrency exchange, is holding nearly 1 million Bitcoin (BTC) in its wallets, making up approximately 5% of the total BTC supply. This startling statistic was revealed by blockchain intelligence platform Arkham, which has identified Coinbase as the largest Bitcoin entity globally, with a staggering 947,755 BTC, worth over $25 billion.
The platform shared this information in a recent tweet, stating that Coinbase now holds around 5% of all Bitcoin in existence, a figure comparable to that held by the enigmatic Satoshi Nakamoto, the creator of Bitcoin.
Arkham has also identified and tagged 36 million Bitcoin deposit and holding addresses associated with Coinbase. Additionally, the exchange reportedly holds around 10,000 BTC in its largest cold wallet. However, Arkham believes that Coinbase may possess additional Bitcoin that remains unlabeled or unidentified, based on the exchange’s financial reports.
While Arkham claims that Coinbase holds over $25 billion worth of BTC, data from CoinGecko shows that the exchange actually owns only about 10,000 Bitcoin, equivalent to approximately $200 million. This discrepancy has sparked some debate within the crypto community.
News of Coinbase’s substantial Bitcoin holdings has sparked mixed reactions within the industry. Some individuals view it as a signal to withdraw their Bitcoin from centralized exchanges, cautioning against waiting until exchanges potentially halt withdrawals. They argue that crypto holders should become self custodians by utilizing cold wallets.
In terms of Bitcoin ownership by companies, MicroStrategy, a business intelligence firm, maintains its position as the largest holder. The company announced in August that it owns 152,800 BTC, valued at over $4 billion at the time.
Coinbase’s significant Bitcoin holdings demonstrate its leading position within the cryptocurrency industry, despite facing growing regulatory scrutiny. The exchange was sued by the SEC in June for alleged wrongdoings, including selling unregistered securities and running unregistered financial services. It also received Show Cause orders from 11 US states, requiring Coinbase to justify why it shouldn’t cease operations in those states.
However, despite these legal challenges, Coinbase has surpassed second-quarter revenue expectations and experienced a significant stock rally this year. Its stock has gained 156% amidst renewed retail interest and a tech rebound in the sector.
It is worth noting that Base, a blockchain backed by Coinbase, has also been making headlines recently. It has surpassed Solana in terms of total value locked (TVL), reaching an impressive $397.32 million since its launch in August.
Coinbase’s substantial Bitcoin holdings highlight its prominence in the cryptocurrency industry, despite the regulatory hurdles it faces. With its continued growth and influence, Coinbase remains a leading force in the world of digital assets.
