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The Blockchain Does Not Forget

January 1, 2022 - Zero Friction confirmed the two addresses linked to Microstrategy's Bitcoin Holding Treasury. According to the latest publicly released information, Microstrategy currently holds 124,391 BTC. As a follow-on to prior analysis, Zero Friction was able to infer from onchain data the accuracy of such holdings.

By clustering various public information an analyst can confirm occurrences of specific transactions. In this example, Michael Saylor, CEO of Microstrategy announced that the company added 1,914 BTC in December here. In addition, according to the SEC filing submitted, the acquisition took place between December 9 and December 29, 2021 as shown below.

This provides a time period from which the analyst can further scope the data analysis. In our case, we were able to reconcile the net accumulation between the two known treasury addresses to a total of 2,217 BTC vs. 1,914 BTC as reported (an error rate of 15%). The reason for the discrepancies was that our focus was to identify consistency in transaction pattern and did not take into account any net transfers from other addresses that Microstrategy may have access to.

This is one example that the blockchain does not forget. Onchain data can be a value breadcrumbs to verified past transactions such that your past deeds will always be remembered.

Remember the story of the 10,000 Bitcoin paid for two pizzas by Laszlo Hanyecz? Here it is today as it was on May 22, 2010! Laszlo's purchase paved the way for crypto evolution we are experiencing today.


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