$BTC
Saylor BTC Purchase: Step-by-Step
1. Corporate Treasury Decision
Board & Executive Approval: The MicroStrategy board approves BTC purchases as part of treasury strategy.
Rationale: BTC is chosen as a long-term store of value and inflation hedge.
2. Funding the Purchase
Internal Cash Reserves: Some BTC buys are funded using existing cash.
Debt Instruments:
Convertible Notes: MicroStrategy issues convertible senior notes to raise funds.
Secured Loans: Occasionally, BTC-backed loans are used (e.g., with Silvergate).
Equity Offering: Selling stock to raise money (e.g., at-the-market equity offerings).
3. Selecting the Exchange or OTC Desk
Saylor prefers OTC (Over-the-Counter) desks to avoid slippage.
Known partners: Coinbase Prime, Galaxy Digital, NYDIG.
4. Executing the Purchase
Large BTC buys are split into smaller algorithmically timed trades.
Algorithms help minimize market impact and keep prices stable.
Trades are executed over hours or days.
5. Custody of the Bitcoin
BTC is stored in cold wallets with institutional-grade security.
Custodians may include Coinbase Custody, Fidelity Digital Assets, or self-custody.
6. Public Disclosure
As a public company, MicroStrategy files a Form 8-K or 10-Q/10-K with the SEC.
Saylor also tweets the news with the number of BTC and total value.
#SaylorBTCPurchase #BTC #btclearn