Michael Saylor, the CEO of MicroStrategy, is known for his bullish stance on Bitcoin. He has been actively advocating for the adoption of Bitcoin as a store of value for corporations, and his company has been buying Bitcoin in large quantities. As of May 2021, MicroStrategy holds over 91,000 BTC, worth over $3 billion at current prices. Saylor’s approach to Bitcoin goes beyond just buying and holding. In this article, we will explore how Michael Saylor stores his Bitcoin.
Saylor’s Bitcoin storage strategy is based on a deep understanding of the security risks associated with holding large amounts of Bitcoin. He has highlighted the importance of securing Bitcoin by using best practices such as cold storage and multi-signature wallets. Cold storage refers to storing Bitcoin offline, which makes it less susceptible to hacking attempts. Multi-signature wallets require multiple signatures to access the funds, making it more difficult for hackers to steal Bitcoin.
Saylor has also talked about the importance of diversifying Bitcoin storage across multiple wallets and custody providers. This approach reduces the risk of a single point of failure and ensures that even if one wallet or custody provider is compromised, the rest of the Bitcoin holdings remain secure.
MicroStrategy’s Bitcoin storage strategy involves using a variety of wallets and custody providers. The company uses Coinbase, Fidelity Digital Assets, and Gemini as its primary custody providers. It also uses a combination of hardware and software wallets, including Ledger, Trezor, and Casa.
Hardware wallets are physical devices that store Bitcoin offline. They are considered one of the most secure ways to store Bitcoin. MicroStrategy uses Ledger and Trezor hardware wallets to store its Bitcoin. These wallets require a PIN code to access the funds, and the private keys are stored offline, making it almost impossible for hackers to steal Bitcoin.
Software wallets are digital wallets that store Bitcoin on a computer or mobile device. They are less secure than hardware wallets since they are connected to the internet, making them more vulnerable to hacking attempts. However, software wallets are more convenient to use since they can be accessed from anywhere with an internet connection. MicroStrategy uses Casa software wallets to store a portion of its Bitcoin holdings.
In addition to using multiple wallets and custody providers, MicroStrategy has also invested in security measures such as cyber insurance and third-party security audits. The company has a cyber insurance policy worth $5 million, which covers losses due to cyber attacks or theft. It also conducts regular security audits of its Bitcoin holdings to ensure that the storage and security protocols are up to date and effective.
In conclusion, Michael Saylor’s approach to Bitcoin storage is based on a deep understanding of the security risks associated with holding large amounts of Bitcoin. He has emphasized the importance of using best practices such as cold storage and multi-signature wallets, diversifying storage across multiple wallets and custody providers, and investing in security measures such as cyber insurance and security audits. By following these best practices, MicroStrategy has been able to secure its Bitcoin holdings and reduce the risk of theft or loss due to cyber attacks.