Michael Saylor Stands Firm: “We Buy Real Bitcoin” Amid Paper BTC Claims

After facing challenges related to potential exclusion from the MSCI index, Strategy (formerly MicroStrategy), a leader in corporate Bitcoin treasury management, is now dealing with fresh doubts. Some community members have accused the organization of purchasing derivatives or “rehypothecated” coins, commonly referred to as paper BTC.

Key Takeaways

Michael Saylor states that Strategy only purchases real Bitcoin, denying claims of buying paper BTC.
As of now, Strategy holds 712,000 BTC, with significant investments made in 2024, 2025, and 2026.
Criticism has emerged regarding over 110,000 BTC being untraceable, leading to skepticism about the company's claims of ownership.
The company's stock has experienced recent declines in tandem with the overall Bitcoin market.

Michael Saylor Strategy

However, Michael Saylor, the founder and chairman of Strategy, has categorically rejected these allegations, stating, “We buy real Bitcoin. We audit our custodians. We don’t rehypothecate. You shouldn’t either.”

Analysis of Strategy’s Bitcoin Holdings

As it stands, Strategy possesses 712,000 BTC, substantially increasing its holdings over the past two years. In 2024, the company invested approximately $20 billion into Bitcoin [BTC], adding another $23 billion in 2025. So far in 2026, they have invested nearly $4 billion, acquiring over 40,000 BTC during this time.

Michael Saylor Source: CryptoQuant

Notably, their 2026 acquisitions rival the 11,700 BTC mined thus far this year. Analysts like Jesse Myers argue that this surge in purchasing could lead to an eventual price rally due to supply constraints. Nonetheless, despite Strategy's significant multi-billion-dollar Bitcoin investments, market price activity has remained subdued.

Jameson Lopp, a security researcher and founder of the BTC custody platform CasaHODL, expressed skepticism regarding the authenticity of the Bitcoin being acquired. He noted, “Your thesis is sensible (BTC rallying as Strategy buys more)… under the assumption that he’s buying real bitcoin.” Lopp questioned whether Strategy can confirm that its holdings are not being utilized by its custodians for other purposes, asking, “Does Strategy actually verify that their Bitcoin only belongs to them and isn’t rehypothecated? I’m skeptical.”

Concerns Over 110K BTC Being Untraceable

Currently, Strategy employs three custodians to secure its Bitcoin: Coinbase, Anchorage, and Anchorage Digital. Approximately 420,000 BTC are held securely at Coinbase and Anchorage, which are traceable due to the use of segregated addresses, according to on-chain analysts. In fact, the stash managed by these two custodians is closely monitored by Arkham, which estimates it at 415,000 BTC.

Reportedly, more than 183,000 BTC have been transferred to Fidelity Custody, which does not maintain separate wallets like Coinbase and Anchorage, making it challenging to track these holdings.

Michael Saylor Strategy Source: Arkham

This raises the issue of over 110,000 BTC being unaccounted for among the three custodians, as noted by analyst Sani. This lack of accountability has led to skepticism from critics questioning whether Strategy actually possesses the over 700,000 BTC it claims. As of this writing, Saylor has not responded to social media inquiries requesting proof of the untraceable Bitcoin holdings.

In financial markets, Strategy’s MSTR stock price fell approximately 2% to $157.45 following a 1.5% drop in Bitcoin’s price after the recent FOMC meeting.

Final Thoughts

As the cryptocurrency space continues to evolve, the legitimacy of Bitcoin holdings, especially at a corporate level, remains a topic of scrutiny and debate.