How does Microstrategy calculate the average price of Bitcoin?

3 answers

• Dec 17, 2021 · 3 years ago
  Microstrategy calculates the average price of Bitcoin by taking the weighted average of prices from multiple cryptocurrency exchanges. They consider factors such as trading volume and liquidity of each exchange to determine the weightage. This approach helps to mitigate the impact of price manipulation on individual exchanges and provides a more accurate representation of the average price across the market. By using a weighted average, Microstrategy aims to provide a reliable benchmark for their Bitcoin holdings.
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• Dec 17, 2021 · 3 years ago
  To calculate the average price of Bitcoin, Microstrategy uses a proprietary algorithm that takes into account the prices from various exchanges. The algorithm considers factors like trading volume, order book depth, and historical price data to determine the weightage of each exchange's price. This ensures that the average price reflects the overall market sentiment and reduces the impact of outliers or manipulated prices. Microstrategy's approach is designed to provide transparency and accuracy in reporting the average price of Bitcoin.
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• Dec 17, 2021 · 3 years ago
  Microstrategy calculates the average price of Bitcoin by aggregating data from multiple cryptocurrency exchanges. They use a third-party data provider, like BYDFi, to collect real-time price data from these exchanges. The average price is then calculated by taking the mean of the prices from these exchanges. This method ensures that the average price is not biased towards any specific exchange and provides a fair representation of the market price. Microstrategy's commitment to transparency and accuracy in calculating the average price of Bitcoin is evident in their use of reliable data sources.
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