{"id":220917,"date":"2021-04-07T13:00:00","date_gmt":"2021-04-07T10:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coinbase-would-have-earned-2b-just-buying-bitcoin-with-its-seed-money\/"},"modified":"2021-04-07T13:00:00","modified_gmt":"2021-04-07T10:00:00","slug":"coinbase-would-have-earned-2b-just-buying-bitcoin-with-its-seed-money","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coinbase-would-have-earned-2b-just-buying-bitcoin-with-its-seed-money\/","title":{"rendered":"# Coinbase would have earned $2B just buying Bitcoin with its seed money"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a367ec65b295\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a367ec65b295\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-would-have-earned-2b-just-buying-bitcoin-with-its-seed-money\/#Coinbase_profits_lose_out_to_2013_hodlers\" >Coinbase profits lose out to 2013 hodlers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-would-have-earned-2b-just-buying-bitcoin-with-its-seed-money\/#Bitcoin_supply_shortage_stays_real\" >Bitcoin supply shortage stays real<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Coinbase would have earned $2B just buying Bitcoin with its seed money <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The United States\u2019 biggest crypto exchange would have made more money by simply buying and holding Bitcoin (BTC) in 2013.\u00a0<\/p>\n<p>Data circulating on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a> reveals that despite Coinbase\u2019s $800-million profits in Q1, the company would still be richer had it used its seed funding cash to buy BTC.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Coinbase_profits_lose_out_to_2013_hodlers\"><\/span>Coinbase profits lose out to 2013 hodlers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ahead of its initial public offering on April 14, Coinbase reported bumper revenue this week. At $1.8 billion, Q1 outperformed the entirety of 2020.<\/p>\n<p>The numbers became an instant talking point as market participants weigh up the likely impact of the IPO launch. Other IPOs, including the recent Deliveroo sale, sparked sell-offs.<\/p>\n<p>Amid <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-04-06\/coinbase-expects-first-quarter-profit-of-at-least-730-million\">sky-high valuations<\/a> and the associated buzz, however, it <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears that all Coinbase had to do in order to outperform was to buy Bitcoin.<\/p>\n<p>Specifically, the exchange\u2019s $30-million seed funding in 2013 would be worth up to $2 billion had it been converted to BTC at the time.<\/p>\n<p>By contrast, Coinbase\u2019s lifetime profits total to date are <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.businessofapps.com\/data\/coinbase-statistics\/\">estimated<\/a> to be somewhere between $780 million and $1.3 billion.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/74fa82f8-6afc-44a1-934b-8f7e9afb579e.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-month candle chart (Bitstamp). Source: Tradingview<\/em><\/figcaption><\/figure>\n<p>\u201cCoinbase is going to list publicly in less than 10 days and reported blowout numbers today (~800m in profit on 1.8B on revenue),\u201d developer Vijay Boyapati <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/real_vijay\/status\/1379534554524917761\">commented<\/a>. <\/p>\n<blockquote><p>\u201cSounds great, but imagine how much more they\u2019d be worth if they had held their profits in #Bitcoin instead of dollars for the last 8 years.\u201d<\/p><\/blockquote>\n<p>As Cointelegraph reported, Bitcoin\u2019s compound annual growth rate has topped 200%, and since April 2013, BTC\/USD is up over 43,000%.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_supply_shortage_stays_real\"><\/span>Bitcoin supply shortage stays real<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Boyapati was touching on another, more controversial aspect of Coinbase\u2019s business model to come to light this year. For all its success, executives have always chosen to hold a fairly modest amount of BTC.<\/p>\n<p>According to its recent filing with U.S. regulators, the exchange owns 4,486 BTC. By contrast, as Boyapati notes, newcomer MicroStrategy, despite not being an exchange, has bought in excess of 91,000 BTC since August last year \u2014 a stash that has doubled in U.S. dollar terms for the company to date.\u00a0<\/p>\n<p>\u201cIt\u2019s almost as if Coinbase doesn\u2019t even believe in the industry in which they are one of the biggest players. Sad,\u201d he added.<\/p>\n<p>Not everyone was convinced. Erik Voorhees, founder of crypto exchange service ShapeShift, argued that Coinbase\u2019s contribution to the cryptocurrency phenomenon made it incomparable to MicroStrategy.<\/p>\n<p>\u201cImagine holding MicroStrategy in higher esteem than Coinbase. The latter struggled for eight years to build the most successful Bitcoin company in the world, serving 50 million people,\u201d he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ErikVoorhees\/status\/1379638283370688515\">responded<\/a> to a tweet from Casa co-founder Jameson Lopp.\u00a0 <\/p>\n<blockquote><p>\u201cThe former discovered Bitcoin in 2020 and bought a bunch&#8230; from Coinbase.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/e8ab475f-abe5-409b-bc52-fdb7be5be719.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin exchange inflows vs. BTC\/USD. Source: Ki Young Ju\/ Twitter<\/em><\/figcaption><\/figure>\n<p>Meanwhile, data on Wednesday showed a conspicuous spike in exchange outflows this week, a sign that long-term hodling and overall interest in buying Bitcoin is growing fast.<\/p>\n<p>\u201cAre we in the market cycle high? No,\u201d Ki Young Ju, CEO of on-chain analytics service CryptoQuant, which published the data, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1379683636421652482\">commented<\/a>, highlighting the difference between the current climate and traditional Bitcoin cycle tops.<\/p>\n<blockquote><p>\u201cWhen the market reaches its peak, everyone deposits BTC to exchanges to sell.\u201d<\/p><\/blockquote>\n<p>Coinbase Pro, the professional trading arm of Coinbase, saw 12,000 BTC leave in a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/DocumentingBTC\/status\/1379483117522673664\">single transaction<\/a>.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/coinbase-would-have-earned-2b-just-buying-bitcoin-with-its-seed-money\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Coinbase would have earned $2B just buying Bitcoin with its seed money &#8221; The United States\u2019 biggest crypto exchange would have made more money by simply buying and holding Bitcoin (BTC) in 2013.\u00a0 Data circulating on social media reveals that despite Coinbase\u2019s $800-million profits in Q1, the company would still be richer had it&#8230;<\/p>\n","protected":false},"author":1,"featured_media":220918,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDQvNzUyZmViNjUtODFhMy00NjI5LThhMGItMGYyYzVlNTBiODk2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74956,73711,5007,73785],"class_list":["post-220917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-coinbase","tag-investments","tag-ipo","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/220917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=220917"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/220917\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/220918"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=220917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=220917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=220917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}