We’re excited to announce that Coinbase was selected as the primary execution partner for MicroStrategy’s $425 million purchase of Bitcoin earlier this year. 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. MicroStrategy chose Coinbase because of our market leading tools, which include smart order routing and advanced algorithms as well as our white glove sales and trading services.
Our system takes a single large order and breaks it into many small pieces that are executed across multiple trading venues. This type of smart order routing minimizes the trade’s market impact and helps disguise the overall trade size. Leveraging our technology, the trading team achieved an average execution price that was less than the price at which buying started. In periods of high volatility, our advanced trading tools improved the client execution by as much as 1%. For MicroStrategy, this strategy resulted in savings of approximately $4.25 million.
As more companies look to crypto to hedge or diversify their excess cash, we are ready to serve them. On our mission to create an open financial system, having companies like MicroStrategy recognize the value of crypto can be monumental in growing the cryptoeconomy. 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. Working on an agency basis, clients can be sure our interests are aligned as we seek to find the best prices available in the market. The institutions we work with value our discretion and custom services as they make critical investment decisions.
To read a case study on the MicroStrategy trades click here. To learn more about Coinbase Prime or Coinbase’s white label brokerage services, custody, or OTC trading, click here.
was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
