Coinbase explains how it helped MicroStrategy invest $425 million in Bitcoin

MicroStrategy, the analytics software provider, used the broker service of the cryptocurrency exchange Coinbase to buy Bitcoin for $425 million. The exchange itself reported this.

\n

The Coinbase Prime service was built on the Tagomi platform, acquired in May. Using it, MicroStrategy invested $250 million in Bitcoin in August and $175 million in September.

\n

According to Coinbase representatives, their solution distinguishes itself by featuring a \”smart order routing\” system, trading algorithms, and additional services.

\n

Before finalising the large investment deal, the exchange conducted a ‘test operation’, determining for MicroStrategy the optimal pace of purchases to mitigate volatility.

\n

\”Our system splits a large order into a multitude of smaller parts, which are executed across various trading platforms. The team achieved the average execution price that was below the price at the start of purchases,\” writes Coinbase.

\n

MicroStrategy became the first publicly traded company to invest in Bitcoin as a reserve asset.

\n

MicroStrategy CEO Michael Saylor said that cryptocurrency has greater growth potential than fiat and, in the long term, offers the maximum return for shareholders.

\n

Earlier ForkLog reported that the value of the cryptocurrency MicroStrategy purchased in 2020 has risen to $735.2 million.

\n

Subscribe to ForkLog news on Telegram: ForkLog Feed — full news stream, ForkLog — the most important news and polls.