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.

Sep 25, 2023 - 16:52
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Coinbase Holds Over $25 Billion in Bitcoin
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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.

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.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.