MicroStrategy continues to use Coinbase for its Bitcoin acquisitions, leveraging Coinbase’s institutional services to execute large purchases while minimizing market impact. Since its initial $425 million Bitcoin investment in 2020, facilitated by Coinbase, MicroStrategy has expanded its holdings significantly. The company regularly utilizes Coinbase’s prime brokerage and over-the-counter (OTC) trading services, which include tools like the Time Weighted Average Price (TWAP) algorithm. This approach allows for executing extensive purchases over several days, thereby reducing the risk of price fluctuations due to market slippage   .

MicroStrategy’s ongoing use of Coinbase reflects the exchange’s appeal for institutional investors, as it offers features tailored for high-volume trades, including smart order routing and institutional-grade risk management. This ongoing relationship indicates that Coinbase remains a trusted partner for MicroStrategy’s Bitcoin acquisition strategy in 2024 and beyond.

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Yes, MicroStrategy has used Coinbase for its substantial Bitcoin purchases. Specifically, Coinbase played a key role in MicroStrategy’s initial $425 million Bitcoin acquisition in 2020. MicroStrategy selected Coinbase as its primary platform due to Coinbase’s advanced trading tools, including smart order routing and algorithmic trading strategies, which helped minimize market impact. The transaction was spread over several days and used Coinbase’s Time Weighted Average Price (TWAP) algorithm to execute the trades without significantly affecting Bitcoin’s price   .

This partnership showcases Coinbase’s appeal for institutional clients, as the exchange provides dedicated support for large-scale transactions and corporate clients looking to diversify into crypto assets.

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Aside from MicroStrategy, several major companies utilize Coinbase’s institutional services, particularly Coinbase Prime, for various cryptocurrency needs. These include asset management firms, large corporations, and technology companies exploring blockchain and digital assets:

1. Tesla – Known for its $1.5 billion investment in Bitcoin, Tesla leverages Coinbase’s infrastructure for secure storage and transaction management. Though Tesla later sold a portion of its Bitcoin, it continues to maintain a significant crypto presence.

2. Square (now Block, Inc.) – Square, led by Jack Dorsey, has also partnered with Coinbase to manage its Bitcoin holdings, initially purchasing $50 million in Bitcoin as part of a treasury strategy and later expanding that investment.

3. PayPal – This payments giant integrates with Coinbase to enable cryptocurrency transactions for its users, allowing them to buy, hold, and sell Bitcoin, Ethereum, and other cryptocurrencies. PayPal’s adoption of crypto payments reflects Coinbase’s broader influence in mainstream financial services.

4. Institutional Investors and Asset Managers – Firms like Grayscale, Fidelity Digital Assets, and Ark Invest use Coinbase’s custodial and trading services. Coinbase Prime is particularly attractive to these institutions for its comprehensive suite of tools, including staking services, financing, and access to DeFi assets, which appeal to sophisticated investors looking for diverse exposure to the crypto market.

5. Financial and Tech Giants Exploring Blockchain – Companies like JPMorgan Chase and Visa have also shown interest in crypto by developing blockchain-related services or investing in crypto-focused firms. While not all directly hold crypto on Coinbase, many use Coinbase’s tools and partnerships to expand their blockchain initiatives.

These collaborations highlight Coinbase’s role in facilitating institutional adoption of cryptocurrencies, providing essential services such as secure custody, advanced trading, and analytics to help large companies and investors manage their crypto portfolios effectively. Coinbase’s growth in this area aligns with a broader trend of increasing corporate interest in digital assets and blockchain technology as part of long-term financial strategies.

For more details, see sources such as Decrypt, Forbes, and Coinbase’s institutional reports     .