CEX CEO: Following the Strategy's Bitcoin reserve strategy is "too risky"

GateUser-6433627c · 2025-05-12T20:16:40+00:00

The CEO of CEX revealed that he had considered investing 80% of assets into Bitcoin, but gave up due to concerns about risks. In the early stages, it is necessary to balance risk and financing needs, and an aggressive strategy was not chosen. The company currently holds about 25% Bitcoin but does not intend to take excessive risks.

GateUser-6433627c

2025-05-12 20:16:40

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On May 12, CEX CEO Brian Armstrong revealed that the crypto trading platform had considered putting 80% of its balance sheet into Bitcoin, but abandoned the idea for fear that it could “ruin the company.” During a Q&A session with clients, executives were asked if they missed the opportunity to start accumulating BTC earlier, as the company started operations eight years earlier than software company Strategy. Armstrong believes that Bitcoin’s volatility means that aggressive strategies are too risky, especially in the early stages of CEXs, when key milestones need to be reached to unlock additional funding rounds. “If our runway of money suddenly shortens from 18 months to 12 months, or even 10 months, it could completely ruin the company,” Armstrong said. He explained that when CEXs were startups, executives made “conscious choices” on risk, as if the BTC price fell sharply at the wrong time, it would affect the exchange’s growth. Nonetheless, Armstrong emphasized that the company does hold Bitcoin on its balance sheet, with about 25% of its net cash currently holding cryptocurrency. “We’re not going to put 80 percent into it, I think that’s too risky.” He added.

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