How do big companies store their bitcoins?

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Quote from: ancafe on Today at 02:25:49 AM

Quote from: ? on December 15, 2024, 12:26:00 PM

Hi guys. My question is, how do big companies store bitcoins? Which wallets are used? What is the procedure for accessing the wallet? And how they are not afraid to keep such a large number of bitcoins worth millions of dollars in their wallets. The human factor can play a very cruel joke.

Big companies must have a secure wallet to store bitcoins because it is a top priority when they buy bitcoins and maybe it has been answered by previous users on the main page. But if you ask the company, I am sure they will never want to answer what wallet is used in detail because talking about security is impossible to talk about in public. If talking about being afraid or not, it really depends on the company, this is not a small number and they must have prepared definite security measures.

If the company dares to invest a large amount of money in bitcoin, then the level of security they use will certainly be much better. They don't want to risk losing assets and have certainly prepared carefully to use a much safer wallet.

Their coins - their right to keep their secrets shut Grin

In all honesty, big companies know their business, surely.
We can only say about smaller companies that will flock to BTC in the near decade to have (just maybe) some issues or breaches in the future to come, and I am eager to see something like that to be set as an example for others.

ancafe

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Quote from: ? on December 15, 2024, 12:26:00 PM

Hi guys. My question is, how do big companies store bitcoins? Which wallets are used? What is the procedure for accessing the wallet? And how they are not afraid to keep such a large number of bitcoins worth millions of dollars in their wallets. The human factor can play a very cruel joke.

Big companies must have a secure wallet to store bitcoins because it is a top priority when they buy bitcoins and maybe it has been answered by previous users on the main page. But if you ask the company, I am sure they will never want to answer what wallet is used in detail because talking about security is impossible to talk about in public. If talking about being afraid or not, it really depends on the company, this is not a small number and they must have prepared definite security measures.

If the company dares to invest a large amount of money in bitcoin, then the level of security they use will certainly be much better. They don't want to risk losing assets and have certainly prepared carefully to use a much safer wallet.

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Quote from: ? on December 15, 2024, 12:26:00 PM

Hi guys. My question is, how do big companies store bitcoins? Which wallets are used? What is the procedure for accessing the wallet? And how they are not afraid to keep such a large number of bitcoins worth millions of dollars in their wallets. The human factor can play a very cruel joke.

I believe they use an air-gapped hardware wallet as cold storage and track their portfolio somewhere. They may also use multi-sig wallets. I am not sure if one can create a multi-sig wallet using a hardware wallet. But if it is possible, I guess most companies use this technology to store their Bitcoin. I don't know which hardware wallet is better than the others.

However, as a user, if you have thousands of dollars of Bitcoin, you should use a hardware wallet, which may only cost you a few hundred bucks. But it is worth it. So, consider buying a hardware wallet if you have Bitcoin and want to secure it. Most importantly, store your seed phrases offline and securely.

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While I do agree with hard wallets, I also think that they almost all have their own servers as well, and backups and so forth. They do not really need to have a hardware wallet, do they? I mean they could just put the wallet somewhere, and they could put backups of it in ten other places, without needing another tool.

I mean they could also get it too, like they may have ten different ledgers and put it all on different ledgers so it would be diversified and all that, but I am not sure if there is a "need" for it, that would be something they do because they want to do it, not because they have to do it. If I was a big company like that, I would put it all on my server, in different wallets, to make sure it's diversified, and would back it up in 10 different places, just in case, even in out of office places too. That way it would look much better and we could have a better approach and could do much better as well, results would show that it's safe and secure enough.

tbct_mt2

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Quote from: CoinFoxs on December 16, 2024, 07:21:00 AM

Usually Hardware Wallets.

Hardware wallets can be open source or close source, and companies with big funds must use open source hardware wallets. Hardware wallets are not automatic good.

They need to buy it rightly and back up their wallets properly too. It's important for their wallet recovery later and this recovery step is important to secure their fund.
[LIST] Open Source Hardware Wallets
[GUIDE] How to buy a Hardware Wallet the right way
[LIST] Multisig Wallets

Backup
How to back up a seed phrase?

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Quote from: Popkon6 on December 16, 2024, 06:25:50 AM

Quote from: ? on December 15, 2024, 12:26:00 PM

Hi guys. My question is, how do big companies store bitcoins? Which wallets are used? What is the procedure for accessing the wallet? And how they are not afraid to keep such a large number of bitcoins worth millions of dollars in their wallets. The human factor can play a very cruel joke.

But as much as I know different companies use different approaches, they basically use multi-sig. And they use hot wallets to complete daily transactions, especially the most important is cold storage. Basically there are multiple backups that every employee is connected to and they manage it efficiently enough to keep it safe. And they store it for a long time and manage it more securely, so it is quite secure.

Some of their addresses, active ones, may be known, but most of them, and especially the ones used just to store BTC - of course they would try to make them as much unknown as possible to everybody around.
After all - privacy is key, and big companies try to keep up with that just like ordinary enthusiasts from their side.

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Usually Hardware Wallets.

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You need to ask to that big companies to have a real answers. Those big companies prepare many things before they start invest in Bitcoin. Whatever wallets they are used, that is their business but we can guess from all wallets that we know that they may used. They don't afraid to keep such a large number of Bitcoin because they know how to secure their Bitcoin. I don't think they will tell public what wallet they used to store Bitcoin although some of them may tells that. We have a standard procedure how to secure our wallet and what wallet that suit for us so that is what the big companies will do. I am sure they already read all things necessary for that.

Popkon6

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Quote from: ? on December 15, 2024, 12:26:00 PM

Hi guys. My question is, how do big companies store bitcoins? Which wallets are used? What is the procedure for accessing the wallet? And how they are not afraid to keep such a large number of bitcoins worth millions of dollars in their wallets. The human factor can play a very cruel joke.

But as much as I know different companies use different approaches, they basically use multi-sig. And they use hot wallets to complete daily transactions, especially the most important is cold storage. Basically there are multiple backups that every employee is connected to and they manage it efficiently enough to keep it safe. And they store it for a long time and manage it more securely, so it is quite secure.

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Quote from: avikz on December 16, 2024, 05:39:43 AM

Quote from: ? on December 15, 2024, 12:26:00 PM

Hi guys. My question is, how do big companies store bitcoins? Which wallets are used? What is the procedure for accessing the wallet? And how they are not afraid to keep such a large number of bitcoins worth millions of dollars in their wallets. The human factor can play a very cruel joke.

Big corporates do not hold their Bitcoins in a hardware wallet or something similar to this. They have enterprise level custodian services available in the market which are usually insured. Companies like Microstrategy, do not keep their Bitcoins in one location. That's the basic safety they all employ to safeguard their Bitcoins.

You can refer to this article if you want to know more about it -

https://river.com/learn/how-should-a-business-store-bitcoin/

Hope this helps!

Diversification is bliss.
Cool

Even for the big guys.

Outhue

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It is a company right? Either big or small they have the money to go the best way of storing their Bitcoin, and that's through cold storage, off the Internet, the safest way possible I believe.

The fact about storing Bitcoin the best possible way is not even costing anyone a lot, I suggest every one to go same route as these so called companies, like I've said it takes few hundred dollars to get the best open source hardware wallet.

I recommend airgapped bitcoin wallet like Keystone, can't go wrong with three security chips in one wallet, so far this wallet is one of the best, there are other options available too.

avikz

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Quote from: ? on December 15, 2024, 12:26:00 PM

Hi guys. My question is, how do big companies store bitcoins? Which wallets are used? What is the procedure for accessing the wallet? And how they are not afraid to keep such a large number of bitcoins worth millions of dollars in their wallets. The human factor can play a very cruel joke.

Big corporates do not hold their Bitcoins in a hardware wallet or something similar to this. They have enterprise level custodian services available in the market which are usually insured. Companies like Microstrategy, do not keep their Bitcoins in one location. That's the basic safety they all employ to safeguard their Bitcoins.

You can refer to this article if you want to know more about it -

https://river.com/learn/how-should-a-business-store-bitcoin/

Hope this helps!

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Quote from: ? on December 15, 2024, 12:26:00 PM

Hi guys. My question is, how do big companies store bitcoins? Which wallets are used? What is the procedure for accessing the wallet? And how they are not afraid to keep such a large number of bitcoins worth millions of dollars in their wallets. The human factor can play a very cruel joke.

I think they use cold wallets, but different companies with different approach.

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Quote from: lovesmayfamilis on December 16, 2024, 04:50:10 AM

Certainly, rich companies with hundreds of bitcoins in their assets provide for all security factors that can save their assets in all possible emergencies. It is pointless to talk about all the intricacies of storage here, since each organization will have its own secret one way or another that no one will ever show publicly.

Quote from: Wiwo on December 15, 2024, 01:34:36 PM

The image above shows how/ways businesses handles their Bitcoin reserves.

https://river.com/learn/how-should-a-business-store-bitcoin/

It's like a cherry on top of each cake - each cake would be sweet, but the cherry on top would be different in taste and form.
The cherry would be the security secrets in question.

lovesmayfamilis

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Certainly, rich companies with hundreds of bitcoins in their assets provide for all security factors that can save their assets in all possible emergencies. It is pointless to talk about all the intricacies of storage here, since each organization will have its own secret one way or another that no one will ever show publicly.

Quote from: Wiwo on December 15, 2024, 01:34:36 PM

The image above shows how/ways businesses handles their Bitcoin reserves.

https://river.com/learn/how-should-a-business-store-bitcoin/

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Quote from: X-ray on December 15, 2024, 11:46:44 PM

when it comes to this, multisig always appear in my mind, no way the company will just let one person oversee their wallet and if something bad happen all the asset gone.

but knowing that managing the private key on their own gonna add some unnecessary risk and point of failure, i'd bet they will let other company that specializes in crypto and is highly trustable to be managing their bitcoin.

but yeah, there's always possibility that they are creating their own tools, just for the sake of security but I doubt most of big companies are doing that, and also, they definitely won't tell you about how they secured their bitcoin.

Multisigs, cold wallets, personal solutions, you name it - companies would use all of these and more, in my opinion.
When you are big enough, you can rely on yourself, and that is, of course - the best way out of security issues due to you being the one in control, not the one who does software / stuff for you.
Relying on somebody being a giant in that field may lead to trouble.

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As I know big companies usually store their bitcoins with big quantities in something called cold wallets (These are wallets not connected to the internet ) which makes them very secure against hacking. They might use hardware wallets like Ledger or Trezor or even create custom solutions in strong and secure computers. For extra security, they often use multi-signature (multi-sig) wallets where several people need to approve a transaction before funds can move, and thus is in case someone could get access to that computer or hacked it.
Accessing the wallet needs a procedure with private keys. In multi-sig setups many wallet should be combined and no single person has complete control on the funds. Companies also back up the keys in secure locations,
like vaults.

Honestly, I find that half or even the more important part on storing bitcoins is not just about the method or place but also avoiding many mistakes to let hackers easily get access to you and make the company vulnerable .

Baofeng

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Quote from: ? on December 15, 2024, 12:26:00 PM

Hi guys. My question is, how do big companies store bitcoins? Which wallets are used? What is the procedure for accessing the wallet? And how they are not afraid to keep such a large number of bitcoins worth millions of dollars in their wallets. The human factor can play a very cruel joke.

Good question, but I will speculate that some big companies might used Coinbase prime custody:

Quote

Secure digital asset custody
Join the most robust, regulated institutions who have chosen to use our platform to store and manage their digital assets.

https://www.coinbase.com/prime/custody

Even Bitgo has this kind of custody as well, the good thing that this "trusted" exchange are being used as a custodian is that they are fully insured, so it covers against theft and loss.

And yes the old and traditional way, Multi-sig wallet.

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when it comes to this, multisig always appear in my mind, no way the company will just let one person oversee their wallet and if something bad happen all the asset gone.

but knowing that managing the private key on their own gonna add some unnecessary risk and point of failure, i'd bet they will let other company that specializes in crypto and is highly trustable to be managing their bitcoin.

but yeah, there's always possibility that they are creating their own tools, just for the sake of security but I doubt most of big companies are doing that, and also, they definitely won't tell you about how they secured their bitcoin.

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Quote from: Alphakilo on December 15, 2024, 02:48:15 PM

Multisig, large custodians like Coinbase specifically meant for big companies such as Microstrategy and the likes of them.

This is a question that even if Michael Saylor is asked, there will not tell you as if will possibly compromise their security.

Wrong, Saylor makes no secret of the fact that they keep their funds with Fidelity Custody.

Quote from: hd49728 on December 15, 2024, 10:25:01 PM

I don't say using a third party service, like Coinbase, as a custodian for your Bitcoin fund, is safe and best way of storage, but it's fact. You can check it with Bitcoin Spot ETFs in the USA and many of them choose Coinbase as their custodians.

I believe that the third party service that specialize in custody and security measures will be the default option for large companies, such as MSTR. For a large company “not your keys not your coins” makes no sense.

Topic: How do big companies store their bitcoins? (Read 290 times)