MicroStrategy News: Michael Saylor Acknowledges Quantum Risks As A Real Threat To Bitcoin

Key Insights:

• In the latest MicroStrategy news, the firm has revealed security risks that may impact Bitcoin.
• Michael Saylor fuels concern over the long-term quantum risks in crypto.
• MSTR stock struggles to regain the bullish support amid a broader crypto market selloff.

Quantum computing concerns just made MicroStrategy news after the company reportedly issued its stance on the matter. Rapid quantum advancements have some analysts on the edge given the technology’s potential for disruption in an industry heavily reliant on cryptography.

According to the latest MicroStrategy news, the company has officially acknowledged that quantum risks may plague Bitcoin in the long term.

Google AI lead Jeff Dean predicted that commercial and practical quantum applications could happen as soon as within 5 years. Notably, MicroStrategy sees this as a potential threat to Bitcoin within the next 10 years.

MicroStrategy Launches Bitcoin Security Program for Quantum Risks

Michael Saylor, the chairman of MicroStrategy, recently revealed that the company is already making strides towards future-proofing against quantum risks.

He confirmed the creation of a Bitcoin security program that will “coordinate with the global cyber, crypto and BTC security community” to develop quantum-resistant cryptography.

As per the MicroStrategy news, Michael Saylor called this move a long-term play to secure the future of Bitcoin, given that the practicality of such sophisticated attacks is still at least 5 years away.

According to Deloitte research, it would take a quantum computer about 30 minutes to hack a Bitcoin signature.

However, with millions of transactions taking place on the network every minute, such a computer would need to work at currently-impossible seconds or microseconds to successfully “hack” the Bitcoin blockchain.

Saylor hopes that by the time this is possible, blockchain quantum resilience will have been developed and perfected.

Latest MicroStrategy news continues to drive MSTR stock performance as it jumped 26% to around $135 on Monday, kicking off the week on a bullish note.

This is after the stock dropped 17% last week, on Thursday, and closed at $106.99. According to an 8-K filing with the Securities and Exchange Commission on Monday, the company announced it has acquired another 1,142 BTC for approximately $90 million at an average price of $78,815.

MicroStrategy news showed that the firm now holds 714,644 BTC (~$49 billion), which it bought for ~$76,056 per BTC at a total cost of $54.4 billion, per The Block.

Meanwhile, players on the Polymarket prediction platform made a killing after the prediction of Strategy purchasing more than 1,000 BTC between February 3 and February 9 came to pass, following a 1,000+ BTC purchase by the company.

At this price, MicroStrategy is approximately 9.2% in the red on all BTC it owns. Strategy CEO Phong Le said, “Bitcoin would need to drop to and remain at $8,000 for 5-6 years before any balance sheet issues emerge.”

What this Means for MicroStrategy and Bitcoin Investors?

MicroStrategy remains the ultimate Bitcoin proxy as they continue stacking and future-proofing. Even after last week’s 17% drop on the MSTR stock that wiped over $12 billion from the market cap, Strategy remains resilient, bagging even more BTC as Bitcoin strategy conviction remains high.

For MicroStrategy (MSTR) holders, the 26% gains on Monday have renewed hopes for their portfolio. Fresh BTC buys and talks of long-term security moves signal Strategy is here to stay.

Meanwhile, Bitcoin price is up 2.9% and trading at $69,397 as of 9:44 a.m. ET, moving in a tight range between $69,000 and $70,000 over the past 3 days.

The price action is firmly below the 50-day and 200-day Simple Moving Averages (SMA), further cementing the bearish pressure on the asset.

The Relative Strength Index (RSI) is currently at 32.35 after whipsawing from the oversold region. In the past year, the RSI has dipped into the oversold region only once before, making market analysts suspect BTC may have bottomed.

Data from Coinglass Derivatives Visualizer shows both Bitcoin’s Open Interest and price are down, a combination that signals that futures traders are closing longs.

BTC price might face a precarious position if longs exit in favor of short positions. This outcome may underscore more capitulation risk.