Coinbase Faces Major Bitcoin Withdrawal, Hits Record Low Holdings
Coinbase sees over 18,000 BTC withdrawn, marking its lowest Bitcoin supply since 2015
Coinbase, a top cryptocurrency exchange, has experienced a significant withdrawal event, with data from Arkham Intelligence, Glassnode, and Coinglass reporting a removal of over 18,000 Bitcoin. This action, amounting to nearly $1 billion, has notably reduced Coinbase's Bitcoin reserves.
The withdrawal saw these Bitcoins distributed across various new wallets, with amounts in these wallets ranging from $45 million to $171 million. This redistribution has left Coinbase with about 390,000 Bitcoins, or roughly $20.5 billion, marking its lowest share of Bitcoin holdings since 2015 and accounting for less than 2% of the total Bitcoin available on exchanges. The reasons behind this massive transfer are still unknown, as the destination wallets haven't been identified. This move has sparked curiosity and speculation about the potential motivations behind such a significant withdrawal.
Despite this, Coinbase's financial health appears strong. The exchange's Q4 2023 earnings report showed a total revenue of $3.1 billion for the year, with the last quarter significantly boosting this figure. Since the year's start, Coinbase's stock price has risen by 15%, reflecting a positive market response to its financial performance. This event underscores the dynamic nature of the crypto market and Coinbase's resilience. As the exchange adjusts to its new level of Bitcoin holdings, the impact on its operations and the broader cryptocurrency landscape remains a focal point for observers.
