Coinbase has helped MicroStrategy invest $ 425 million in bitcoin Coinbase, an American cryptocurrency exchange, helped MicroStrategy invest $ 425 million in bitcoin, Coinbase itself reported today.

Coinbase shares how it helped MicroStrategy invest $ 425 million in bitcoin

American cryptocurrency exchange Coinbase helped MicroStrategy invest $ 425 million in bitcoin, Coinbase itself reported today.

MicroStrategy invested its first $ 250 million over a five-day period in August through the Coinbase Prime brokerage service, which the exchange opened based on the Tagomi platform acquired in May.. In September, MicroStrategy added another $ 175 million to its already invested funds, with which the total amount increased to $ 425 million.Thus, MicroStrategy became the first public company to acquire a large volume of bitcoins in order to keep them as a reserve asset.

In a press release, Coinbase quoted MicroStrategy CEO Michael Saylor as saying that investing in bitcoin is part of his company's “new asset allocation strategy”. The strategy aims to maximize long-term shareholder return by using cryptocurrency as a store of value with higher growth potential than holding fiat currency.

Coinbase cites three reasons why MicroStrategy decided to use its service to buy bitcoin: smart ordering system, trading algorithms and additional services. The exchange participated in several pre-trade calls, in one of which it was asked to conduct a “test operation”. This allowed us to determine the optimal pace of purchases in order to reduce the impact of market fluctuations, after which MicroStrategy approved a "large investment".

“Our system takes one large order and breaks it down into many small parts, which are passed through various trading platforms. The trading team reached an average strike price that was lower than the price at the start of the purchase, ”Coinbase writes..

Note that the cost of MicroStrategy's investment in bitcoin due to the recent rise in the rate is now $ 700 million.

Similar articles

• Binance CEO Opens Up "Attack Attempt" on Binance Cryptocurrency Exchange Binance CEO Changpeng Zhao tweeted this morning about an attempted attack against his company's new futures platform.

  Binance CEO spoke about "attempted attack" on the futures exchange Binance CEO Changpeng Zhao announced the attack attempt this morning on Twitter,...

• British bank Barclays has suspended cooperation with the crypto exchange Coinbase British bank Barclays has stopped serving the cryptocurrency exchange Coinbase, writes CoinDesk, citing sources familiar with the situation.

  British bank Barclays has suspended cooperation with crypto exchange Coinbase British bank Barclays has stopped serving cryptocurrency exchange Coinbase,...

• Bitfinex Freezes Criminal Assets in Bitcoins for $ 860,000 by Court Order A British court ordered the cryptocurrency exchange Bitfinex to freeze assets worth $ 860,000 in bitcoin. As the exchange and crypto-analytical company Chainalysis found out, they were associated with the activities of ransomware, reports New Money Review..

  Bitfinex Freezes Criminal Assets in Bitcoins for $ 860,000 by Court Order British Court Orders Cryptocurrency Exchange Bitfinex to Freeze Assets...

• Bitwise has applied to list a Bitcoin ETF in the US Crypto asset management company Bitwise has filed an S-1 S-1 application with the US Securities and Exchange Commission (SEC) to list an exchange traded fund (ETF) backed by bitcoins.

  Bitwise has applied for a US Bitcoin ETF listing Crypto asset manager Bitwise has filed an application with the SEC and...