Michael Saylor, founder and executive chairman of MicroStrategy (MSTR), discussed his organization’s strategy to introduce software and solutions powered by the Bitcoin Lightning Network in 2023.
Saylor has plans with lightning infrastructure
According to Investopedia, Bitcoin (BTC) wasn’t structured to be scalable. The motive behind Bitcoin was to facilitate a decentralized payment system which allows users to access it from anywhere privately. Wide usage – because of Bitcon’s growing popularity – slows network speed and cost was more than expected.
Due to the above mentioned problems, developers created crypto layers, finally moving to initial blockchain, then to second, tertiary and so on. The second layer of BTC is called Lightning Network that uses micropayment channels to add functionality of blockchains strength to enable more transactions.
Recently, Saylor said that “We want to make it possible for any enterprise to spin up Lighting infrastructure in an afternoon”
“We want to plug it into enterprise technology and make it a marketing strategy for any forward thinking CMO,” he added.
MSTR’s strategy
Chairman Saylor declared that the firm had purchased more BTC which resulted in the total holdings to 132,500 BTC. Saylor is making the news again in the community ever since the company bought more BTC. The crypto community calls him a “rock star”. A user replied in a post on Twitter: “Michael Saylor, you are a rock star. Your mission Jim aka Michael Saylor, if you choose to accept it, is to bank the unbanked throughout the world.”
Willy Woo, veteran Bitcoin analyst stated that MicroStrategy’s accumulation of BTC might threaten decentralization in decision making. According to him, BTC holders should not be sunny on the company’s move, but on the other side suggested celebrating its adaptability by the masses. Another analyst Dan Held remarked that no risk of monopoly would be there as it doesn’t relate to network control.
According to media reports, MicroStrategy has bought 2,395 BTCs for $42.8 million between November 1 and December 21, 2022 via its subsidiary, as stated in a filing of U.S. Securities and Exchange Commission (SEC).
The SEC report also mentioned that “On December 22, 2022, MacroStrategy sold approximately 704 bitcoins for cash proceeds of approximately $11.8 million, at an average price of approximately $16,776 per bitcoin, net of fees and expenses. MicroStrategy plans to carry back the capital losses resulting from this transaction against previous capital gains, to the extent such carrybacks are available under the federal income tax laws currently in effect, which may generate a tax benefit.”
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/29/saylors-microstrategy-to-sail-high-via-btc-lightning-solutions-in-2023/