John D’Agostino, Coinbase's Head of Institutional Strategy, appeared on CNBC Tuesday to weigh in on the market volatility.

D’Agostino emphasized that while the decline looks large in dollar terms, it’s typical volatility on a percentage basis for crypto.

Asked about Strategy Inc (NASDAQ:MSTR), D’Agostino, whose firm acts as a primary custodian for Strategy’s Bitcoin, said “I’ve seen no evidence that Saylor is not telling the truth,” pushing back against rumors of forced selling at the world’s largest corporate Bitcoin holder.

Speaking in November, D’Agostino noted Bitcoin has historically endured 70-80% drawdowns on the way to multi-year rallies. “If you like this asset, you should like it at a discount.”

Strategy Underwater

Strategy now holds 717,131 BTC at an average cost of roughly $76,027 per coin. With Bitcoin (CRYPTO: BTC) trading near $68,000, the company's holdings are underwater.

Despite this, Saylor told CNBC on Feb. 10 that fears of forced liquidation are “an unfounded concern,” citing 2.5 years of cash dividends on hand to service debt.

Strategy CEO Phong Le backed this up, telling Bloomberg this week that liquidation would only trigger if Bitcoin crashed 90% and stayed there for five years—a scenario he deemed “extremely unlikely.”

Polymarket bettors currently price in a 12% chance Strategy sells any Bitcoin by year-end, with over $20 million having being wagered on the outcome.

Coinbase’s Own Struggle

D’Agostino's defense comes as his own firm faces headwinds. Coinbase's (NASDAQ:COIN) Q4 earnings missed on key metrics:

• Revenue: $1.78 billion (missed estimates).
• Net Loss: $667 million (GAAP).
• Guidance: $550 million –$630 million for Q1, well below analyst expectations.

Following the print, Piper Sandler slashed its price target on COIN from $270 to $150.

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