Coinbase behind MicroStrategy’s $ 425 million BTC buyout
Coinbase announces that MicroStrategy is the primary execution services partner for Bitcoin acquisition. The purchase, carried out months ago, took several days and was carried out using people and algorithms to limit market impact.
Business software company MicroStrategy has become the latest darling of the cryptocurrency community after it announced it would allocate a large chunk of its balance sheet to Bitcoin as part of a Treasury Reserve strategy. In the background, a more familiar face pulled the strings for the purchase: Coinbase.
In an announcement that is shared with the block, based in San Francisco, crypto currency exchanges, Coinbase is the Prime unit-the main brokerage and over-the-counter (OTC) trading services covering Virginia – based MicroStrategy’s primary execution services partner, said earlier this year of 425 million-dollar Bitcoin purchase was made. The statement following expressions were used:
“Using our advanced execution capabilities, our leading primary brokerage platform and OTC desk, we were able to purchase a significant amount of Bitcoin on behalf of MicroStrategy, and we did so without moving the market.”
This is considered a big win for Coinbase. In the cryptocurrency market, firms are scrambling to connect with new entrants to the market, including those who want to buy Bitcoin on their own or offer cryptocurrency services to their customers. Fidelity Digital Assets, dCg’s Genesis Global Trading and BitGo are among other companies offering execution and primary like-for-like services in the nascent market.
The trend of publicly traded companies adding Bitcoin to their balance sheets has become a popular topic of discussion among cryptocurrency enthusiasts who say the move could help push Bitcoin to new heights.