5% of all Bitcoin ever made is held by this exchange.

5% of all Bitcoin ever made is held by this exchange.

Coinbase Holds 5% of Bitcoin Supply: An Insight into the Blockchain Industry

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Coinbase, one of the largest cryptocurrency exchanges, is making headlines once again in the blockchain industry. Recent reports reveal that Coinbase is holding nearly 1 million Bitcoin (BTC) in its wallets, which accounts for approximately 5% of the total existing BTC supply. This massive amount of Bitcoin has sparked mixed reactions within the crypto community and has shed light on Coinbase’s leading position within the industry.

The blockchain intelligence platform Arkham has identified Coinbase as the largest Bitcoin entity in the world, with a total of 947,755 BTC. To put this into perspective, Arkham compares Coinbase’s holdings to that of Satoshi Nakamoto, the mysterious creator of Bitcoin. According to Arkham, Coinbase’s holdings are about as much as what is attributed to Nakamoto. Additionally, Arkham has identified and tagged 36 million Bitcoin deposit and holding addresses associated with Coinbase.

It is important to note that these figures are based on Arkham’s analysis, and there might be additional Bitcoin held by Coinbase that has not been labeled or identified. This is mostly due to the exchange’s financial reports, which may not fully reflect its comprehensive holdings. CoinGecko data, for example, suggests that Coinbase actually owns around 10,000 Bitcoin, equivalent to approximately $200 million. Nevertheless, Coinbase’s significant Bitcoin holdings highlight its leading position within the cryptocurrency industry.

The revelation about Coinbase’s substantial Bitcoin holdings has triggered various reactions in the crypto community. Some individuals see it as a signal to withdraw their Bitcoin from centralized exchanges, urging others not to wait until exchanges potentially halt withdrawals. The idea of becoming a self-custodian with a cold wallet is emphasized as a more secure alternative.

When it comes to Bitcoin ownership by companies, the business intelligence firm MicroStrategy remains the largest holder. The company announced that it owns 152,800 BTC, valued at over $4 billion at the time of writing. Despite growing regulatory scrutiny, Coinbase continues to maintain its leading position within the cryptocurrency industry. Earlier this year, the Securities and Exchange Commission (SEC) sued Coinbase for several alleged wrongdoings, including selling unregistered securities and engaging in illegal financial services. The exchange also received Show Cause orders from 11 US states, requiring it to justify why it shouldn’t cease operations in those states.

Despite these regulatory challenges, Coinbase has exceeded second-quarter revenue expectations, driven by higher interest income. The exchange’s stock has also experienced a remarkable rally, gaining 156% this year. This success can be attributed to renewed retail interest in cryptocurrencies and a sector-wide tech rebound.

It is also worth mentioning that Coinbase-backed Base blockchain has been making its mark in recent news. Base has surpassed Solana (SOL) in terms of total value locked (TVL). Since its launch in August, Base’s TVL has reached an impressive $397.32 million, outpacing Solana’s TVL of $358.96 million.

These developments surrounding Coinbase and its Bitcoin holdings provide valuable insights into the blockchain industry. They demonstrate the evolving landscape of cryptocurrency exchanges and the significant role they play in the adoption and growth of cryptocurrencies. While regulatory challenges persist, Coinbase’s position as the largest Bitcoin entity in the world showcases its resilience and adaptability in this dynamic industry. As the blockchain industry continues to mature, the role of exchanges like Coinbase will remain pivotal in shaping the future of cryptocurrencies.