U.S. crypto exchange Coinbase said Tuesday that it brokered Microstrategy’s $425 million bitcoin purchase earlier this year. Until now, it has not been clear who facilitated the deal.
Microstrategy’s first bitcoin (BTC) haul of $250 million bought in August was executed over five days, Coinbase revealed in a case study of the transactions.
The deals – done via the exchange’s brokerage unit called Coinbase Prime – leveraged human effort and trading algorithms that sliced Microstrategy’s order into 200,000 fills. Each fill averaged under 0.3 BTC in size, it said.
Cutting the main order into much smaller orders placed across several liquidity pools helped to “minimize price impact … [and] to not disturb the market” while achieving savings of $4.25 million for Microstrategy.
“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,” Brett Tejpaul, head of institutional sales, custody and prime services at Coinbase, said in a blog post.
Microstrategy, a Nasdaq-listed business intelligence and software company, with a market capitalization of $3.02 billion, has become a central talking point in the…