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Cryptocurrency exchange Coinbase (NASDAQ:COIN) is currently holding approximately 1 million Bitcoins, valued at about $25 billion, according to recent findings by blockchain analytics firm Arkham Intelligence, published on Sunday. This figure signifies that Coinbase owns nearly 5% of the total circulating Bitcoin supply worldwide.
Arkham Intelligence's research has identified and tagged about 36 million Bitcoin deposit and holding addresses associated with Coinbase. The largest identified cold wallet, a form of secure offline storage, holds around 10,000 Bitcoins. The firm also suggested that there may be additional untagged Bitcoin holdings owned by Coinbase that have not been included in their research.
These extensive holdings solidify Coinbase's position as the world's largest Bitcoin entity. However, it's worth noting that not all Bitcoins held in Coinbase's wallets are owned by 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 based on 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 interpreted 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 thought to have mined more than 1 million BTC between January and July 2009 when Bitcoin's value was below a penny. At today's value, this would equal more than $26 billion.
In terms of 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 comprises a significant portion of Coinbase's trading volume, making up 40% of its total volumes and about 39% in its transaction revenue.
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Coinbase holds 5% of global Bitcoin supply, amounting to $25 billion