The US-based cryptocurrency exchange Coinbase reveals it assisted in the execution of one of the largest BTC purchases in the entire history of Bitcoin.
In its official document, Coinbase mentions that it helped the giant investment company Microstrategy in buying Bitcoin worth about $425 million, which happened in September 2020.
Coinbase’s Revelation
Coinbase’s head of institutional sales, Brett Tejpaul, reveals some information about the big purchase on the part of Microstrategy and unravels the goal of the company to hit institutional crypto purchases in the future. He said:
“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.”
He claims that the investment giant firm selected Coinbase because it has a wide list of effective market tools that make the whole process safe and easy without disrupting the crypto markets.
Before the real execution of the big trade deal, the largest cryptocurrency exchange in the United States carried out various pre-trade calls.
The big purchase of Microstrategy was completed in a period of five days utilizing the advanced algorithm known as “Time Weighted Average Price.”
According to the post, the first purchase of $250 million was executed in five days and after the success of the first trade deal, the company went on to the second deal of $175 million in Bitcoin.
Coinbase’s post also says that there is a strong case for the entry of institutional clients in the crypto space as metrics are telling the same trend in the markets.
“We hope that this is an inflection point for the cryptoeconomy and look forward to helping more corporate companies and institutions looking to diversify their capital allocation strategies with crypto,” it said.
New Trend among Institutional Clients
Following the Microstrategy, various other institutions are thinking to dedicate a significant portion of their capital to the flagship cryptocurrency because Bitcoin is a good store of value. As a versatile and effective store of value, Bitcoin can perform better against high inflation of the fiat currencies and uncertain policies adopted on the part of central banks.
Payment giant PayPal made a strong bull case for Bitcoin after it announced to support cryptocurrency. Through PayPal, Bitcoin can reach millions of people that could make an effective environment for crypto adoption.
