Coinbase Holds Over $25 Billion in Bitcoin
Coinbase's on-chain reserves revealed: Largest Bitcoin holder in the world with over 1M BTC, worth $25B.
Yesterday, Coinbase's on-chain reserves were identified, revealing that the exchange owns more Bitcoin than even Satoshi Nakamoto himself.
Let's start by understanding what is meant by "reserves": these are the total deposits of the users of the exchange (in this case, Coinbase). The platform must keep these reserves segregated to avoid unpleasant surprises similar to those of FTX or The Rock Trading. In the past year, in the name of transparency, all major exchanges have started to periodically publish the so-called "Proof Of Reserves": verifiable reports that show the on-chain holding of user funds.
Coinbase has never published its own, as it already undergoes periodic auditing being a publicly traded company (Coinbase shares are listed on NASDAQ). This had left a bitter taste in the community's mouth. However, in recent days, the on-chain analysis and intelligence platform Arkham identified Coinbase's wallets, peering into its reserves. Here's what they discovered.
Arkham has identified and tagged over 36 Million BTC deposit and holding addresses used by Coinbase, with their largest cold wallet containing ~10K BTC.
Based on their most recent financials, Coinbase likely has thousands more BTC not yet labeled. pic.twitter.com/WVdlTBWs8K — Arkham (@ArkhamIntel) September 22, 2023
Coinbase's Bitcoin reserves are immense, amounting to 5% of the entire circulating supply. We're talking about more than 1 million BTC, equivalent to over $25 billion, making Coinbase the largest Bitcoin holder in the world. This discovery was made by Arkham Intelligence. Moreover, these aren't all of Coinbase's BTC: reading their latest financial reports, much larger figures are noticeable.
This indicates that not all addresses have been identified by Arkham, but only the majority (they've counted over 36 million). Their investigative work continues to identify the others.