New data reveals that Coinbase holds a staggering share of global Bitcoin supply.
New data reveals that cryptocurrency exchange Coinbase has custody of an enormous amount of Bitcoin (BTC), roughly equivalent to 5% of the cryptocurrency's entire circulating supply. These holdings are worth over $25 billion at today's Bitcoin market value.
According to blockchain analytics firm Arkham, Coinbase is holding approximately 947,755 BTC. To put it in context, the total circulating supply of Bitcoin is around 19,493,537.
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Arkham also stated that they have identified 36 million Bitcoin deposit and holding addresses used by Coinbase. The largest cold wallet under Coinbase's control has around 10,000 BTC.
Arkham suggests that there may be more Bitcoin held by Coinbase that is not yet labeled and, hence, not identified. Contrary to what one might assume, out of the total Bitcoin held in custody, Coinbase owns just around 10,000 BTC, valued at about $200 million based on current prices.
Community reactions to this revelation have been mixed. Some crypto enthusiasts see this concentration of Bitcoin in a centralized exchange as a cautionary tale, advising Bitcoin owners to withdraw their assets.
Others argue that given the legitimate concerns about the security of cold wallets, there isn't a better way to store large amounts of Bitcoin.
On the other hand, when it comes to corporate ownership of Bitcoin, MicroStrategy leads the way. As of August 1st, MicroStrategy's co-founder Michael Saylor announced that the business intelligence firm had 152,800 BTC in its possession, with a value of over $4 billion.
The sizable amount of Bitcoin held by Coinbase underlines the trust users place in the platform but also raises questions about the wisdom of centralizing so much of the cryptocurrency's supply. As the crypto community debates the implications, one thing is clear: Coinbase's influence in the Bitcoin ecosystem is substantial.
