- Coinbase processed Tesla’s bitcoin purchase.
- Coinbase has processed bitcoin purchases for more Fortune-500 companies as clients than can ever be known.
- Coinbase going public might create controversy due to the company’s close ties with the U.S. Government.
While it is no longer news that Tesla purchased $1.5 billion bitcoin, what’s new is that Coinbase (a top cryptocurrency exchange firm) was the facilitator of the exchange. If these rumors are correct, Coinbase is gradually becoming the force in corporate America’s move towards a cryptocurrency-based economy.
Apart from being solely responsible for bitcoin price upward movement, Tesla’s bitcoin purchase is now the standard for all new entrants into the bitcoin market. Thus, giving more credence to the bitcoin community members’ bullish market opinion.
Rumors Have It That Coinbase Was the Facilitator of Tesla’s Bitcoin Purchase.
Grapevine information has it that the purchase has already been made in early February before Tesla made the announcement publicly. Before making the public announcement, finance experts opined that Elon musk must have bought some bitcoin for his electric car company or himself.
Though the latter can’t be verified, no one should be surprised that musk might have bought some bitcoin for himself before buying it for his electric car company. Musk’s timeline of tweets about bitcoin shows that his personal or business investment in bitcoin will eventually become inevitable. Apart from buying bitcoin, the billionaire purchased some Doge for his son.
Coinbase Has Facilitated Bitcoin Purchases for Several Other Fortune-500 Companies.
There are indications that Coinbase has facilitated more bitcoin purchases than can ever be known, even though it’s behind the most popular bitcoin purchases in the last few years. Some of its teeming clients are top American universities and business intelligence companies.
Microstrategy is one of such business intelligence companies. Even its CEO, Micheal Saylor, confirmed that Coinbase was their go-to exchange the first time they wanted to deep-dive into the market. Inside information reveals that Coinbase has several other big shot clients apart from Tesla. Other grapevine sources claim that at least five fortune 500 companies are Coinbase’s clients. However, neither Coinbase nor Tesla has confirmed whether these rumors are true.
Which Other Top Clients Does Coinbase Have?
There are reports that Coinbase’s prime brokerage was the whale bitcoin purchases facilitator. Crypto-twitter predicts that Amazon and Apple could top their clients’ list. While bitcoin skeptics such as Berkshire Hathaway might invest in the cryptocurrency out of FOMO, it would be fun times to see such companies invest in BTC anyways. It is highly likely that Coinbase’s client list might be for public consumption since the leading cryptocurrency exchange intends to go public before year-end. If it goes public successfully, it would be the first cryptocurrency exchange to seek public market funds.
Some controversies are surrounding Coinbase due to its close ties with the U.S. Government. In the year 2020, the company was alleged to have sold intelligence software to the SEC. Though Brian Armstrong, Coinbase CEO, claimed that the government couldn’t use the software to leak users’ private information, the community members argued otherwise.