Cryptocurrency exchange Coinbase (NASDAQ:COIN) currently holds approximately 1 million Bitcoins, worth about $25 billion, according to recent research by blockchain analytics firm Arkham Intelligence published on Sunday. This figure indicates that Coinbase owns nearly 5% of the total circulating Bitcoin supply worldwide.
Arkham Intelligence’s research identified and tagged approximately 36 million Bitcoin deposit and holding addresses associated with Coinbase. The largest identified cold wallet, a form of secure offline storage, contains around 10,000 Bitcoins. The firm also suggested that there might be additional untagged Bitcoin holdings owned by Coinbase not included in their research.
These extensive holdings solidify Coinbase’s position as the world’s largest Bitcoin entity. However, it’s essential to note that not all Bitcoins held in Coinbase’s wallets belong to the exchange itself. While Coinbase manages wallets containing billions of dollars’ worth of Bitcoin, its actual corporate-owned Bitcoin holdings are estimated to be around 10,000 BTC, equivalent to approximately $200 million at current prices.
In contrast to Coinbase’s substantial holdings, there has been a significant decrease in the supply of Bitcoin on exchanges. Data from Santiment shows that the amount of BTC held on exchanges is approximately 1.1 million, a record low in nearly six years. This decline could be seen as a bullish signal but may also be influenced by regulatory uncertainties surrounding Coinbase and other exchanges.
Coinbase’s Bitcoin holdings rival those of Satoshi Nakamoto, the founder of Bitcoin. Nakamoto is believed to have mined over 1 million BTC between January and July 2009 when Bitcoin’s value was less than a penny. At today’s value, this would be worth more than $26 billion.
Regarding corporate Bitcoin ownership, MicroStrategy continues to be a significant player. In their August financial disclosure, MicroStrategy revealed that they hold 152,800 BTC, valued at over $4 billion.
Coinbase’s most recent 10-Q filing with the Securities and Exchange Commission (SEC) estimated that it held $60.7 billion in customer assets and liabilities in Bitcoin. Trading in Bitcoin and Bitcoin pairs makes up a significant portion of Coinbase’s trading volume, accounting for 40% of its total volumes and approximately 39% of its transaction revenue.