How does MicroStrategy use Bitcoin to determine the average price?

3 answers

• KingsMainaMSsteveFeb 13, 2021 · 4 years ago
  MicroStrategy uses Bitcoin to determine the average price by collecting data from various cryptocurrency exchanges and calculating the weighted average based on the trading volume of each exchange. This allows them to have a more accurate representation of the market price. They also take into consideration factors such as liquidity and order book depth to ensure the accuracy of their calculations.
  401

  201
• Chellamani KandanAug 23, 2023 · 2 years ago
  To determine the average price, MicroStrategy leverages Bitcoin's transparent and decentralized nature. They analyze the trading data from different exchanges and calculate the average price based on the volume-weighted average price (VWAP) methodology. This approach helps them avoid relying on a single exchange's price and provides a more comprehensive view of the market.
  375

  125
• Jonatan Vázquez NavaFeb 09, 2022 · 3 years ago
  Using Bitcoin as a benchmark, MicroStrategy gathers price data from multiple exchanges and applies advanced statistical algorithms to calculate the average price. This methodology ensures that the average price is not skewed by outliers or manipulated prices on individual exchanges. By utilizing Bitcoin's widespread adoption and liquidity, MicroStrategy can accurately determine the average price of Bitcoin in the market.
  424

  106