Coinbase Enabled MicroStrategy’s Massive $425 Million Bitcoin Buy

In letter

  • Coinbase enabled MicroStrategy’s $ 425 million investment in Bitcoin.
  • Before today’s announcement, it was not known which custodian was used to purchase MicroStrategy Bitcoin.
  • Coinbase has also made it clear that it is ready to help other companies diversify into crypto.

Coinbase made it easier for MicroStrategy to invest $ 425 in Bitcoin this summer, according to one blog entry released today.

One of the most notable features of the Bitcoin bull run in 2020 was the ability of the cryptocurrency to attract high-level institutional investment. The greatest example of this was MicroStrategy invested $ 425 million in Bitcoin this September. However, we didn’t know which custodian used MicroStrategy to make such a large investment – until now.

“With 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 without changing the market.” said Brett Tejpaul, Head of Institutional Sales, Trading, Custody and Prime Services at Coinbase.

An investment as large as MicroStrategy could always have an impact on the market. However, according to Coinbase, this has been avoided by obscuring the overall size of the trade from MicroStrategy.

“Our system takes a large single order and breaks it down into many small pieces that are executed in multiple trading venues,” said Tejpaul, adding, “This type of intelligent order routing minimizes the impact of trading on the market and helps reduce the overall trade size to disguise. ”

Since MicroStrategy made its main investment in Bitcoin, there have been other high profile investments, including square invest $ 50 million in Bitcoin in October. In addition, several high profile investors like it Stanley Printmiller and Raoul Paj recently touted Bitcoin as an investment worthwhile asset.

With this trend evolving, Coinbase has made it very clear that the company is committed to diversifying other companies’ portfolios with crypto. “As more and more companies use crypto to protect or diversify their excess cash, we are ready to serve them,” added Tejpaul.

But who will come next?