Coinbase executed MicroStrategy’s $425M Bitcoin purchase in September 2020

Coinbase executed MicroStrategy’s $425M Bitcoin purchase in September 2020

One of the largest Bitcoin purchases in 2020 took more than five days to complete.

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Coinbase, the United States’ largest cryptocurrency exchange, announced that itfacilitated one of the largest institutional Bitcoin (BTC) purchases in 2020.

According to an official announcement, Coinbase was selected as the primary execution partner for MicroStrategy’s $425 million purchase of Bitcoin in September 2020.

Brett Tejpaul, head of institutional sales at Coinbase, provided more details about the purchase as well as the company’s aim to facilitate institutional purchases in a Dec. 1 blog post.

“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,” Tejpaul said. According to the post, MicroStrategy chose Coinbase because the platform provides a number of market tools like smart order routing and algorithmic trading tools.

According to a case study on the MicroStrategy trades, Coinbase conducted a series of pre-trade calls with MicroStrategy prior to the $425 million purchase in order to better understand trade execution goals and develop a trading plan.

Following the successful test, Coinbase began to execute the larger trade, involving the “Time Weighted Average Price” algorithm to execute the trade over a period of five days.

Over the course of the trade, MicroStrategy had a 9 a.m. call each day with the Coinbase trading team to start trading and report overnight fills. After completing an initial $250 million investment over a period of five days, MicroStrategy went on to invest an additional $175 million in Bitcoin following the success of the first trade, for a total investment of $425 million.

In the post, Coinbase expressed its willingness to help more institutions looking to buy crypto:

“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.”


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One of the largest Bitcoin purchases in 2020 took more than five days to complete.

Bitcoin Whale Population Approaching September 2017 Levels

Bitcoin Whale Population Approaching September 2017 Levels

The number of Bitcoin whales with the ability to affect the BTC price is approaching 2017 levels, when the token was ascending to $20K.

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The number of investors holding an immense amount of Bitcoin is starting to approach levels the crypto community hasn’t seen since the cryptocurrency’s rally to $20,000. 

According to Glassnode’s ‘The Week On-Chain’ report for June 15, there has been steady growth in the number of Bitcoin (BTC) whales—traders holding 1000 BTC or more—since January 2020. 

Glassnode

Source: Glassnode

The crypto analytics site said there are currently 1882 of these whales, numbers rivaling those in September 2017, when BTC was starting its ascent to $20,000. However, the same number of whales held large amounts of Bitcoin in March 2016, when the price was under $420.

“The price of BTC is now more than 20x higher than it was when we first saw this many whales, implying that more wealth is being held by whales. However, the average balance held by each whale has decreased during this period, such that whales actually hold less BTC now than in 2016, and less wealth (in USD terms) than in 2017.”

Power to move markets

Cointelegraph reported in April that many Bitcoin whales are HODLers, not moving or cashing out their digital assets for up to five years even when facing a significant market correction. During the crypto bloodbath on March 12, when the price of BTC dropped to as low as $3,600, many whales did not move their funds.

However, whales still have the ability to significantly impact the price of BTC. On June 15, the price of the cryptocurrency dipped below $9,000 for the first time in weeks as BTC whales liquidated $30 million in longs on crypto exchange BitMEX and sold their reserves at other exchanges.


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The number of Bitcoin whales with the ability to affect the BTC price is approaching 2017 levels, when the token was ascending to $20K.

Atlantis Hard Fork for Ethereum Scheduled for September 17 Launch

Atlantis Hard Fork for Ethereum Scheduled for September 17 Launch

ETC developers settled on block number 8,722,000 for the Atlantis hard fork, which is expected on September 17

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The Atlantis hard fork for Ethereum Classic (ETC) has been officially set to occur at block 8,772,000 on the blockchain, according to the Ethereum Classic Improvement Protocol (ECIP) finalization call via Discord on June 20.

As per the discussions in the call, the developers and contributors had previously considered putting the hard fork at block number 8.75 million, which is predicted to run on September 15.

However, since the 15th is a Sunday, ETC Labs moved to increase the block number in order to have the projected update during the week, when more involved parties, such as exchanges and developers, are more likely be present to discover and deal with any issues that may arise.

Since the release is still several months away, the block number is an imperfect estimate of date; nonetheless, the number has been moved up with the aim of the hardfork arriving on Tuesday, September 17, around noon UST.

The decision appeared to be unanimous.

An official ETC blog post proposed this shift on June 19, which noted block 8.772 million for an intended fork date of approximately September 17. Today’s discussion further solidifies that number.

The post also notes that Atlantis is currently undergoing testing to weed out any bugs or other unwelcome consequences from introducing the new hard fork code to ETC’s original scheme.

The post also notes the following as main priorities of the upcoming hardfork:

“(1) develop high-quality blockchain software that preserves the security of the network

(2) consider the opinions and concerns of the community.”

ETC itself is the original Ethereum blockchain, which is named Classic in response to Ethereum carrying out a hard fork in 2016. This happened amid the collapse of Ethereum-based project “The DAO” after a major hack exploited its security flaws.


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ETC developers settled on block number 8,722,000 for the Atlantis hard fork, which is expected on September 17