The Transaction: The clients goal was to bulk buy bitcoin and establish a relationship with a registered and regulated entity. The initial purchase was of 170 BTC with a timescale of no more than two weeks and with a view to ongoing purchases in the future. The client was fully aware that large purchases of bitcoin can not be completed via global exchanges due to daily purchasing limits and the difficulty in the transferring of large amounts of funds to exchanges.
Location: London - Italy
Project Start: 20th July 2020
Project Completed: 31st July 2020
There are two major problems when buying bitcoin in bulk. The first is having access to a reliable, trusted, and regulated entity that can provide access to large volumes of bitcoin with no daily limits on trading. The second problem is the entity must have established and adequate banking arrangements in place allowing for the transfer of funds.
A reserve of bitcoin and access to an open order book are key to executing large bitcoin orders. The regulated entity can either sell their bitcoin at the agreed price whilst instantly restocking their bitcoin reserve, or they can sell via an open order book, or a mixture of the both. Liquidity and access to an open order book are vital.
It’s also vitally important to have the appropriate banking arrangements in place allowing for the client to transfer the funds being used to purchase the large bitcoin order.
The bulk buy bitcoin transaction was executed without any problems. The client purchased 170 BTC at the price agreed price prior to trade, and the bitcoin was delivered to the client in line with the agreed time frame, which was two weeks. Success all round.