Wonder how many of the private companies listed here are self-custoding their bitcoin? Do public companies, like Strategy can actually self-custody? And if they do, how? What are the best practices and guidelines available? Are they obligated to declare any self-custodied asset?
pull down to refresh
40 sats \ 5 replies \ @Bitcoiner1 11h
Most of them use Coinbase to hold their funds. Bitgo is another big company that hold funds for big clients.
reply
5 sats \ 0 replies \ @Undisciplined 6h
That just shifts the question to how Coinbase and Bitgo secure their holdings as management changes.
reply
0 sats \ 3 replies \ @supratic OP 10h
That's what I guess. Wondering if Strategy is actually self-custodying as Mr Saylor mention on this video. I guess is not, but maybe they are?
reply
0 sats \ 2 replies \ @DarthCoin 9h
https://www.timechainindex.com/?resource=ChartsCoinbaseBUM
Saylor is a smart scammer, you should drop following what he says, is spitting only deceitful lies and is a fiat maxi.
reply
5 sats \ 1 reply \ @supratic OP 9h
Am not following, just referring contents. In the video above, he promotes self-custody but then use third parties to hold Strategy stash. This is even a dummier decision when one realize that only 2% of these funds are actually insured. If something happen to CoinBase they lose 98% of it, by contract.
Let's take Strategy now, they hold only 80k BTC circa on coincabse, where are the other stored then? Self custody?
reply
0 sats \ 0 replies \ @DarthCoin 9h
Strategy "owns" only IOUs, NOTHING. Maybe Saylor himself, for his personal stash have some BTC in self custody in a cold wallet. But I doubt that MSTR have any BTC in 100% own control. Only paper BTC.
Let's stop this all bullshit with saying that MSTR "owns" half a million BTC. That's total bullshit.
reply
0 sats \ 9 replies \ @DarthCoin 12h
Who cares about all those fiat maxis?
Whoever is announcing publicly his stash like "today we bought x BTC amount ..." in fact they do not buy anything but just IOUs or even nothing, is just a blatant lie to fool others.
Companies that are acquiring bitcoin in self custody you will never know them. See my old post about how I onboarded a small company almost 10 years ago... #692855
reply
21 sats \ 8 replies \ @supratic OP 10h
Thaks for sharing this old post, really useful. I took big organizations as an example, in reality could apply to any business. I know you have a guide that describe how to be your own bank. It works for personal use and when one is in charge with singleSig. But how it does scale for multiSig setups? There are any framework or guideline that can be useful also for smaller businesses?
reply
5 sats \ 7 replies \ @DarthCoin 10h
Just use any wallet app that support multisig. Nunchuck, Liana, Electrum, Sparrow, Specter, Bitcoin Safe and so on...
There are quite some (no, I didn't write a guide about that because are already a lot of guides).
I found @Andreasgriffin work with his Bitcoin-Safe #939847 a really interesting project.
For using LN is a bit more difficult. So a business with many employees managing funds, they will have to delegate / trust somebody to do the daily payments over LN if is necessary. But that you can "fix it" easily with a LN sub-account (LNbits, AlbyHub, NWC etc) and give them limited access to the whole node funds. For daily LN payments you don't really need multisig, it will be a hell of job, but for onchain cold reserves, I think is a must, especially when more people must access those funds.
Please from now on refer to my github page with guides. The substack one is not updated anymore:
https://darth-coin.github.io/beginner/be-your-own-bank-en.html
reply
21 sats \ 6 replies \ @supratic OP 9h
That's what I'm talking about, especially when in the organization there are changes of directors or other possible threats to the cold reserve. It is a hell step learning curve for those that focus on doing and managing business, Especially if until yesterday they were relaying on banks to keep their funds safe. Today they can do themselves, not easy t learn how, especially if there isn't much guidance and documentation on it
reply
0 sats \ 5 replies \ @DarthCoin 9h
Yes, is not easy do manage the funds. I saw it myself in that company, where were 3 managing directors and a financial director.
But as you very well mentioned my guide, they must change the mindset and THINK like a bank. Keeping that 3 levels stash scheme is a must (cold, cache, spending).
reply
0 sats \ 4 replies \ @supratic OP 9h
3 level of security make sense and should be used by everyone, 100% on it.
On the cold-storage level, do you think there should be any change in the process when setting up a 3-of-2 vs a 7-of-10 multisig? With process, I mean security practices before and after the multisig setup.
view all 4 replies
0 sats \ 0 replies \ @hodlpleb 4h
Organizations could setup an X-of-Y mulisig and give one hardware wallet to each person on the Board of Directory, maybe one to a law firm or other 3rd party.
I believe public companies have to hold with a custodian (ie. Coinbase)
reply
0 sats \ 1 reply \ @IamSINGLE 6h
I think most of them don't self custody. If any of them does, it's done in the same way as individuals can do. I think being a company they definitely have to declare all of their assets.
reply
0 sats \ 0 replies \ @supratic OP 6h
public companies probably do. private companies, not sure, especially if sats are treated like cash
reply