France: Ledger Wants to Help MicroStrategy Secure its 38,000 Bitcoins
Ledger offers to help MicroStrategy secure its 38,000 Bitcoin (BTC).
Ledger Vault provides the technology infrastructure for entities wishing to store cryptographic data.
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As a reminder, MicroStrategy is a Nasdaq-listed company that has purchased more than 38,000 BTCs in the last two months. This is the equivalent of $425 million in Bitcoin Rush that has been integrated into the balance sheet of this 3,000-employee company.
Ledger offers its help to MircoStrategy
The French manufacturer of cryptographic storage hardware is best known for its hardware wallets for individuals. However, the company also offers a solution for companies and institutions wishing to store and secure cryptomoney.
More recently, Square purchased 4,700 BTCs and has even published a document detailing the process of the transaction. We can learn that the company founded by Jack Dorsey has developed an in-house open source framework called SubZero to secure its Bitcoins.
How to secure such a large quantity of BTCs?
Jean-Michel Pailhon, Vice President Product at Ledger, gave more details on how to secure such a quantity of BTCs.
He said that one of the first steps is to decide how many people are involved in authorizing transactions; a typical configuration requires 2 out of 3 signatures. For example, the CEO, CFO and a lawyer hold a portion of the signature. All private keys are stored on a Harware Security Modules (HSM). This tool has already been used for decades to secure data.
In addition, parts of its private keys can be stored in several physical safes.
Thus, if a company executive wishes to initiate a transaction, then he connects to the Ledger Vault and enters the desired transaction. Then a notification is sent to the three signatories. To approve it, they have to connect their Ledger Blue physical wallet to their computer.
Jean-Michel Pailhon specified that Ledger provides the custody technology and takes care of the HSM infrastructure, the customer is the sole owner of its assets.
MicroStrategy has publicly acknowledged the risks associated with holding thousands of BTCs:
Although we hold the majority of our BTCs with regulated custodians, a security breach or cyber attack could result in the partial or total loss of our assets.