Coinbase Crypto Investment: Bitcoin, Ethereum, and Others

Crypto analytics. Pixabay image.

Coinbase Global (NASDAQ: COIN) is a leading cryptocurrency exchange platform that allows users to buy, sell, and store various cryptocurrencies.

Although Coinbase is primarily a service provider, it has invested in cryptocurrencies and accumulated a decent number of crypto assets.

This article provides regular updates on the market value of the crypto assets owned by Coinbase, offering an insightful view of the performance of these assets over time.

For your information, Coinbase holds several categories of crypto assets which serve different purposes. For example, crypto assets held include crypto assets for investment, crypto assets for operations, crypto assets as collaterals, and borrowed crypto assets.

However, only the crypto assets held for investment are presented in this article.

Let’s look at the results!

For other key statistics of Coinbase, you may find more resources on this page: Coinbase key stats.

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Crypto Asset: Any digital asset built using blockchain technology, including cryptocurrencies, stablecoins, and security tokens.

Fair Value: Fair value or market value is the estimated price at which an asset is bought or sold when both the buyer and seller freely agree on a price.

Cost Basis: The cost basis of a crypto asset is the initial dollar value at which Coinbase records a cryptocurrency on Day 1 when it is added to their corporate inventory.

• How it is determined: The cost basis equals the original purchase price plus any transaction or acquisition fees. For instance, if Coinbase purchases 100 Bitcoin for their investment treasury at $60,000 per coin and pays $5,000 in network/liquidity execution fees, their initial cost basis for that lot is $6,005,000.

• The Role of Cost Basis Today: Under the modern fair value rules that took effect for fiscal years starting after December 15, 2024, Coinbase must mark its crypto inventory to real-time market value at the end of every quarter. However, they are still legally required to disclose their original cost basis alongside the fair value in their SEC financial footnotes. This allows investors to calculate exactly how much unrealized profit or loss Coinbase is sitting on.

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FAQs

To help readers understand the content better, the following FAQs have been provided.

What are Coinbase crypto holdings?

Coinbase stated in its annual reports that its crypto investment policy allows it to invest up to 10% of its net income into a diversified portfolio of crypto assets.

Coinbase also said that it does not use customer crypto assets as collateral for any loan, margin, rehypothecation, or other similar activities without their consent, to which Coinbase or its affiliates are a party. In other words, Coinbase will never use customers’ funds or any assets for investment in cryptocurrencies without their consent.

Over time, Coinbase has amassed a sizable amount of crypto assets for different purposes, which include investment, operational, collateral, etc. As of the end of fiscal Q4 2025, Coinbase’s total crypto holdings were valued at roughly US$3 billion – measured at fair market value, according to the 2025 10-K report.

Coinbase crypto holdings are categorized into several types: investment, operational, collateral, and borrowed. The investment category comprises the largest portion, valuing at over US$2 billion as of the end of fiscal Q4 2025, according to the 2025 10-K report.

Within the investment category, Coinbase said that it views its crypto asset investments as long-term holdings and does not plan to engage in regular trading of crypto assets.

On the other hand, Coinbase uses the crypto holdings for operational purposes to fulfill customer transactions and corporate expenses denominated in cryptocurrency.

Coinbase’s crypto assets are measured in two methods: at cost and fair value.

At-cost refers to the actual cost of acquiring the crypto assets at the time of purchase. This is the value that is presented in the balance sheet after accounting for any asset impairment if there is any.

On the other hand, fair value is based on quoted market prices for one unit of each crypto asset reported on its platform at 11:59 pm Coordinated Universal Time (UTC) on the last day of the respective period multiplied by the quantity of each crypto asset held, according to Coinbase.

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Why does Coinbase invest in cryptocurrency?

Coinbase invests in cryptocurrency for several strategic reasons. First, it allows them to deepen their expertise and understanding of the market dynamics, which is crucial for their operations and the development of new services. By investing, Coinbase can better anticipate market trends, understand the value proposition of different cryptocurrencies, and innovate in ways that align with where the market is headed.

Additionally, investments in cryptocurrency can serve as a key revenue stream and a way to diversify their income. Given the volatility of the cryptocurrency market, having investments spread across different assets can help stabilize their financial performance and leverage growth opportunities within the market.

Moreover, Coinbase’s investments in cryptocurrency can also be seen as a vote of confidence in the crypto ecosystem. By actively participating in the market, they support the growth and stability of the cryptocurrency space, fostering trust among users and encouraging wider adoption.

Finally, investing in cryptocurrency allows Coinbase to potentially influence the development and governance of certain blockchain projects. This can be strategically important for them to ensure that the ecosystem evolves in a way that is compatible with their business model and the interests of their users.

Through these investments, Coinbase aims to strengthen its position in the cryptocurrency market, enhance its service offerings, and contribute to the overall growth and maturity of the cryptocurrency ecosystem.

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Insight & Summary of Coinbase’s Crypto Assets held for Investment

The following analysis consolidates the trends observed across Coinbase’s crypto assets held for investments for the 2020–2025 period.

• Portfolio Growth: From $148M to $2B in Five Years Coinbase’s crypto investment portfolio has grown from a $24M cost basis ($148M fair value) in FY2020 to a $1,751M cost basis ($1,999M fair value) in FY2025 — a 72.9x increase in cost basis and a 13.5x increase in fair value over five years. The fair value total of $1,999M at FY2025 year-end makes Coinbase one of the largest institutionally-held crypto portfolios in the publicly listed corporate universe, alongside MicroStrategy and Marathon Digital. The trajectory is non-linear: fair value declined from $696M (FY2021) to $426M (FY2022) during the crypto bear market before recovering to $1,028M (FY2023) and accelerating through FY2024 ($1,553M) and FY2025 ($1,999M). The FY2023–FY2025 average portfolio cost basis of $988M and fair value of $1,527M confirm that this is now a material balance sheet position rather than incidental corporate treasury activity.

• The FY2025 Acquisition Signal: Cost Basis Compression The most analytically significant data point in FY2025 is the unusual compression of the fair-value-to-cost multiple. In FY2020, fair value was 6.2x cost basis. In FY2023, the multiple was 3.1x. By FY2025, fair value ($1,999M) is only 1.14x cost basis ($1,751M) — a near-parity ratio that would suggest the portfolio is generating almost no unrealised gains. The explanation is the scale of FY2025 accumulation: Coinbase’s cost basis nearly doubled (+98.8%) in FY2025 from $881M to $1,751M, meaning the majority of the portfolio was acquired in FY2025 at prices close to the prevailing market level. This is most visible in Bitcoin: the BTC cost basis surged from $272M (FY2024) to $1,079M (FY2025), while BTC unit count grew from 6,885 to 15,389 (+123.5%), implying an average acquisition cost of approximately $42,200–$70,000 per BTC for the incremental 2025 purchases. This is consistent with Bitcoin trading in the $50,000–$105,000 range during FY2025, confirming that Coinbase was actively accumulating at elevated prices.

• Bitcoin: The Dominant and Accelerating Allocation Bitcoin’s share of Coinbase’s crypto investment portfolio has expanded dramatically across all dimensions. At cost basis, BTC’s mix grew from 38.4% (FY2023) to 30.9% (FY2024) before surging to 61.6% (FY2025), with the FY2023–FY2025 average of 43.6% understating the current directional trend. At fair value, BTC reached 67.3% of the total portfolio in FY2025, up from 37.7% (FY2023) and 41.4% (FY2024), giving a FY2023–FY2025 average of 48.8%. Both cost and fair value BTC dominance trends are unambiguously upward in the most recent year, consistent with Coinbase’s corporate treasury strategy increasingly mirroring the broader institutional “Bitcoin as primary reserve asset” thesis. The FY2023–FY2025 average cost basis growth of 141.4% for Bitcoin and 110.1% for Bitcoin fair value growth confirm BTC as the primary performance driver within the portfolio.

• Ethereum: Stable Accumulation, Declining Mix Ethereum’s absolute holdings have grown — from $129M cost basis (FY2023) to $349M (FY2025), and unit count from 115,700 ETH (FY2024) to 151,175 ETH (FY2025) (+30.6%) — but ETH’s share of the portfolio has steadily declined as BTC accumulation outpaced ETH investment. At fair value, ETH’s mix declined from 26.5% (FY2023) to 22.4% (FY2025), with a FY2023–FY2025 average of 24.6%. The FY2023–FY2025 average ETH fair value growth of 51.2% is respectable but substantially below Bitcoin’s 110.1%. Coinbase’s continuing ETH accumulation reflects its strategic alignment with the Ethereum ecosystem (Coinbase is Base network’s operator and a major ETH staking platform), making ETH a natural balance sheet holding beyond pure investment return considerations.

• Other Crypto Assets: Volatile and Declining in Weight The “Other crypto assets” category — which encompasses altcoins, DeFi tokens, and other non-Bitcoin/Ethereum positions — has been the most volatile segment. At fair value, “Other” reached $525M (FY2024) before collapsing to $204M (FY2025), a -61.1% decline, bringing the FV mix from 33.8% (FY2024) to just 10.2% (FY2025). Cost basis for “Other” similarly declined from $348M to $323M between FY2024 and FY2025. This sharp FY2025 reversal likely reflects a combination of altcoin price depreciation (relative to Bitcoin) and active portfolio rebalancing toward Bitcoin and Ethereum at the expense of the broader altcoin basket. The FY2023–FY2025 fair value growth average of 50.6% for “Other” masks the dramatic FY2025 correction and should be treated with caution as a forward-looking indicator.

• Structural Takeaway: Coinbase’s crypto investment portfolio has evolved from a modest $24M cost position in FY2020 into a $1.75B balance sheet asset by FY2025, with a directional strategy that is increasingly concentrated in Bitcoin. The portfolio’s structural shift — BTC from 38% to 62% of cost basis mix in three years, ETH stable, Other declining — mirrors the broader institutional narrative that characterised the FY2024–FY2025 crypto market: Bitcoin as the primary institutional-grade reserve asset, Ethereum as a strategic operational holding, and altcoins as a declining priority.

  The FY2025 FV/cost ratio of 1.14x is the key risk indicator: Coinbase has committed significant capital to crypto at near-market prices, meaning a material Bitcoin price correction would rapidly move this portfolio underwater on a cost basis, with direct balance sheet and P&L consequences. Conversely, further BTC price appreciation would generate significant mark-to-market gains under fair value accounting, making this portfolio increasingly an equity-like earnings driver. For investors, tracking the FV/cost ratio each quarter alongside BTC price movements is the essential analytical variable for Coinbase’s investment portfolio going forward.

The table below combines all key Coinbase’s crypto assets held for investment metrics into a single view for the latest three fiscal years.

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Number of Bitcoin and Ethereum held

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Bitcoin, Ethereum, and Other Crypto Assets held for Investment at Cost Basis

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Bitcoin, Ethereum, and Other Crypto Assets held for Investment at Fair Value

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Crypto Assets Fair Value Over Cost Ratio

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Credits and References

1. All financial figures presented in this article were obtained and referenced from Coinbase Global, Inc.’s annual and quarterly filings, earnings reports, news releases, shareholder presentations, webcast, etc., which are available in Coinbase Investor Relations.

2. Pixabay images.

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Disclosure

We may use artificial intelligence (AI) tools to assist us in writing some of the text in this article. However, the data is directly obtained from original sources (usually the quarterly and annual reports) and meticulously cross-checked by our editors multiple times to ensure its accuracy and reliability.

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