Whales and Companies Quietly Accumulate Billions in Bitcoin via Secretive OTC Trading Desks

When public companies announce massive purchases of Bitcoin, it's not uncommon for the price to barely move. This is because they're using over-the-counter (OTC) trading desks to buy and sell cryptocurrencies in sizes that would be impossible on public exchanges.

OTC desks are private venues where large buyers and sellers can negotiate trades without affecting the public market. They provide a platform for whales, institutions, corporate treasuries, miners, funds, and governments to buy and sell cryptocurrencies discreetly.

A trade typically flows like this: a buyer contacts an OTC desk with a request for a quote on a large quantity of Bitcoin. The desk responds with a price that reflects the current market plus a spread covering its risk and margin. If the buyer accepts, the trade is locked at that price regardless of where the public market moves.

There are two types of OTC desks: principal and agency. Principal desks trade against clients from their own book, taking on the risk of covering positions in the market. Agency desks work on behalf of clients to find the other side of a trade, charging a commission rather than trading against them.