Coinbase, the largest cryptocurrency exchange in the United States, is holding onto $25 billion in Bitcoin reserves, an amount that rivals the holdings of Bitcoin’s founder Satoshi Nakamoto.
According to a report by Arkham Intelligence, Coinbase has approximately $25 billion in Bitcoin held in about 36 million wallets. The largest identified cold wallet holds about 10,000 Bitcoin, which is worth about $265 million.
What is a cold wallet?
A cold wallet is a type of cryptocurrency wallet that is not connected to the internet. This makes it more secure than a hot wallet, which is connected to the internet and can be hacked.
Arkham’s estimate is based only on the wallets identified as being connected to Coinbase, but the firm suggests that this amount is close to the estimated amount held by Bitcoin’s founder.
Who is Satoshi Nakamoto?
Satoshi Nakamoto is the pseudonymous creator of Bitcoin. His exact identity remains unknown.
Between January and July 2009, Satoshi is thought to have mined more than 1 million BTC in total when Bitcoin’s value was below the value of a penny. At today’s value, this would equal more than $26 billion.
If true, this would make Nakamoto one of the biggest crypto whales today—but there has not been a definitive verification of his ownership of these wallets.
What is a crypto whale?
A crypto whale is an individual or entity that owns a large amount of cryptocurrency.
Trading in Bitcoin and Bitcoin pairs comprises a significant portion of Coinbase’s trading volume. In its most recent quarterly earnings report, Coinbase said that trading in Bitcoin made up 40% of its total volumes, and about 39% in its transaction revenue.
Arkham estimates that the wallets it connected to Coinbase may be an incomplete figure based on the exchange’s stated financials. In Coinbase’s most recent 10-Q filing with the Securities and Exchange Commission (SEC), it estimated that it held $60. 7 billion in customer assets and liabilities in Bitcoin.
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