Replying to Avatar 2Pac

Sure entirely possible, they keep 1:1 for institutional bitcoin and just have a float to cover withdrawals for their million other users and only keep a fractional reserve for those. Just speculating of course but would not surprise me. They just manage it as risk.
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343PG 11mo ago

Yes this combination is possible. If you hold billions with anyone you’d expect some pretty high assurances, wouldn’t you. But I accept this is speculation, and admittedly as an MSTR shareholder I am trusting them to custody it safely.

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2Pac 11mo ago

I don’t “like” coinbase but that said they have been around a long time without blowing up so they have been either keeping 1:1 or they have been managing their reserves conservatively enough to not blow up. Paper bitcoin at the end of the day is just unsecured debt.