Coinbase was involved in facilitating the latest Microstrategy Bitcoin purchase worth $425 million without moving the markets so let’s read more in our Coinbase news today.
The leading US-based exchange Coinbase was involved in the Microstrategy purchase of $425 million worth of BTC and the platform also pledged to help other bigger companies to diversify their portfolios in BTC in the near future as well. The NASDAQ-listed business intelligence company made the news on two occasions previously after announcing that they purchased 38,250 BTC which amounted to $425 million at that time.
However, the company that helped the broker deal make the purchase remained unknown until today. The San Francisco based crypto exchange Coinbase announced that it was the one the selected exchange as the main execution partner for the purchase of $425 million in BTC. The community speculated on the amount and how did it not move the markets as the price of BTC remained still back then. Coinbase explained however that it was the company’s intention in the first place:
“Using our advanced execution capabilities, leading crypto prime brokerage platform, and OTC desk, we were able to buy a significant amount of bitcoin on behalf of MicroStrategy and did so without moving the market.”
Furthermore, the exchange said that its system took a single large order and broke it into a few small pieces which were executed across multiple trading venues and this type of order routing is able to reduce the impact on the trade on the market and to assists in disguising the trade size. This helped MicroStrategy to get a better price for the BTC purchase as the trading team “achieved an average execution price that was less than the price at which the buying started.” The post outlined that the strategy saved 1% for the company.
Microstrategy’s purchase kicked off the wave of bigger companies and investors that are willing to invest in BTC as well. Jack Dorsey’s Square followed with a $50 million BTC allocation and Guggenheim Partners also filed an amendment with the SEC to purchase $500 million worth of BTC for the funds. Coinbase said that more companies are looking to buy BTC in order to diversify their excess cash so the US exchange is “looking forward to helping more corporate companies and institutions that are looking to diversify their capital allocation strategies with crypto.”
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