Michael Saylor Responds to Claims About ‘Paper Bitcoin’
Michael Saylor, the founder and chairman of Strategy (formerly MicroStrategy), has recently addressed allegations questioning the authenticity of his company’s Bitcoin holdings. Facing community scrutiny, Saylor has unequivocally clarified, “We buy real Bitcoin. We audit our custodians. We don’t rehypothecate. You shouldn’t either.”
Strategy’s Massive Bitcoin Holdings
Strategy has built an impressive Bitcoin portfolio, owning approximately 712,000 BTC as of 2026. In recent years, they have invested heavily in the leading cryptocurrency:
- 2024: $20 billion invested in Bitcoin.
- 2025: An additional $23 billion allocated to Bitcoin purchases.
- 2026: Around $4 billion poured into Bitcoin acquisition, with over 40,000 BTC purchased.
Despite these aggressive investments, the price of Bitcoin has remained relatively subdued, prompting some experts to analyze the potential long-term implications of Strategy’s approach.
Verification and Criticism
Strategy has partnered with major custodial services like Coinbase, Anchorage, and Fidelity Custody to safeguard their cryptocurrency holdings. On-chain analysis confirms that 420,000 BTC are stored in segregated wallets managed by Coinbase and Anchorage. However, Fidelity Custody lacks similar wallet segmentation, making it challenging to track nearly 110,000 BTC, which critics claim are unaccounted for.
Jameson Lopp, a prominent security researcher and the founder of CasaHODL, has raised questions about the company’s ability to ensure its Bitcoin holdings are not rehypothecated or misused by custodians. “Does Strategy truly verify that their Bitcoin isn’t part of custodial rehypothecation? I’m skeptical,” Lopp stated.
Market Response
Both the cryptocurrency market and Strategy’s stock price have responded to these unfolding events. At the time of writing, Strategy’s stock (MSTR) saw a 2% decline, dropping to $157.45, while Bitcoin experienced a slight 1.5% fall following the Federal Open Market Committee (FOMC) meeting.
What This Means for Bitcoin Enthusiasts
For crypto enthusiasts and investors, transparency, and custody procedures are critical to ensuring the integrity of Bitcoin holdings. Michael Saylor’s statement, combined with on-chain evidence, suggests that Strategy is a committed believer in Bitcoin’s potential. However, the concerns from industry experts highlight the importance of due diligence and verifying custodial practices, especially for large holdings.
Recommended Product: Ledger Nano X
For individual Bitcoin holders, securing your holdings should be a priority. A hardware wallet like the Ledger Nano X is a trusted solution to store your cryptocurrency securely. With advanced security features, it ensures your Bitcoin remains in your control and free from rehypothecation risks.
