Coinbase revealed $ 425 million bitcoin purchase for MicroStrategy

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Coinbase, the popular cryptocurrency exchange, revealed that it was the company responsible for buy bitcoin (BTC) for USD 425 million for the American company MicroStrategy. Purchases were made between August and September 2020.

“Using our advanced execution capabilities … we were able to buy a significant amount of bitcoin on behalf of MicroStrategy and we did so without moving the market,” said Brett Tejpaul, director of institutional sales at Coinbase.

The executive explained that the Coinbase system, when it comes to a large purchase, you divide it into many parts They run on multiple trading platforms. Doing this, he said, “minimizes the impact on the market and helps disguise the size of the operation.”

Tejpaul added that, thanks to this method, an average strike price that was less than the price at the time of purchase. “For MicroStrategy, this strategy resulted in savings of approximately $ 4.25 million,” he revealed.

As reported by CriptoNoticias, the purchase of bitcoin reported to MicroStrategy, in two months, gains higher than those obtained in its last three years of operations. The company considers that over bitcoin there is “persuasive evidence of its superiority as an asset class for those seeking a long-term store of value.”

Tejpaul claims that Coinbase is ready to serve other companies that “seek cryptocurrencies to hedge or diversify their excess cash.”

“In our mission to create an open financial system, getting companies like MicroStrategy to recognize the value of cryptocurrencies can be monumental in the growth of the crypto economy. We hope this is a turning point for the crypto economy and we look forward to helping more companies and corporate institutions. ”

Brett Tejpaul, Director of Institutional Sales at Coinbase.

Small investors can also buy bitcoin with Coinbase

Coinbase’s business strategy targets both large companies and retail investors wishing to buy bitcoin or other cryptocurrencies. At the time of writing, Coinbase allows you to acquire 36 crypto assets from its platform. Among them, in addition to bitcoin, are ether (ETH), litecoin (LTC), chainlink (LINK), bitcoin cash (BCH), stellar lumens (XLM), and the DAI stablecoin.

Coinbase founder and director Brian Armstrong believes that “the open nature of cryptocurrencies is what makes them powerful tools for innovation.” For this reason, although its platform complies with all the requirements to operate legally, it considers that excess regulations generate friction in the industry.