Crypto exchange Coinbase has been identified by blockchain intelligence platform Arkham as holding almost 1 million Bitcoin (BTC) in its wallets. With current market prices for BTC, these coins are valued at over $25 billion. According to Arkham, this amount accounts for approximately 5% of all existing Bitcoin.
Arkham’s research indicates that Coinbase holds a total of 947,755 BTC. This is a substantial portion of Bitcoin’s circulating supply, which is currently estimated to be around 19,493,537, according to CoinGecko.
Additionally, Arkham has identified and tagged 36 million Bitcoin deposit and holding addresses used by Coinbase. The largest cold wallet held by the exchange is believed to contain around 10,000 BTC. However, the intelligence company speculates that there may be more Bitcoin holdings by Coinbase that are yet to be labeled and identified.
Despite Coinbase holding over $25 billion worth of BTC, the exchange only owns roughly 10,000 Bitcoin out of its total holdings. This equates to around $200 million, as per recent data. These figures show that Coinbase is a significant custodian of Bitcoin but does not fully own the majority of the cryptocurrency it holds.
The news has sparked various reactions within the crypto community. Some individuals are considering withdrawing their BTC from exchanges, expressing concerns about the concentration of Bitcoin in the hands of centralized platforms like Coinbase. They warn others not to wait until exchanges potentially pause withdrawals. Others argue that the security of cold wallets remains a legitimate concern, leaving people uncertain about the best way to store their assets.
When it comes to Bitcoin ownership by companies, business intelligence firm MicroStrategy still holds the largest amount. Co-founder Michael Saylor recently declared that the company owns 152,800 BTC, worth over $4 billion at the time of writing.
As the cryptocurrency market continues to evolve, it is important for investors and users to stay informed about the activities and holdings of major exchanges and institutions. Understanding the distribution and ownership of Bitcoin can help individuals make informed decisions about their digital assets and assess the overall health and stability of the crypto market.