Saylor: 'We Buy Real Bitcoin'

Michael Saylor, founder of MicroStrategy, recently addressed concerns about the company's Bitcoin purchases on X, emphasizing their commitment to acquiring genuine Bitcoin. He refutes claims of rehypothecation and insists that MicroStrategy conducts thorough audits of its custodians.

Key Takeaways

Real Bitcoin Acquisition: MicroStrategy confirms it buys true Bitcoin and does not engage in rehypothecation.
Total Holdings: Following a recent purchase of 2,932 BTC for $264 million, the firm’s total Bitcoin holdings have reached 712,647 BTC.
Market Impact: Despite acquiring significant amounts of Bitcoin, the market price has remained relatively stable.
Custodial Trust: Concerns regarding the safety and authenticity of their Bitcoin holdings have been raised by industry figures.

Michael Saylor, the CEO and founder of MicroStrategy, recently took to the social media platform X to clarify that his company purchases only real Bitcoin. He emphasized that MicroStrategy does thorough audits of its custodians and does not engage in the risky practice of rehypothecation.

This dialogue started when Saylor announced MicroStrategy's latest Bitcoin acquisition on January 26. As reported by U.Today, the company purchased 2,932 BTC for $264 million, increasing its total holdings to an impressive 712,647 BTC, following some significant recent purchases. Despite the notable increase in Bitcoin bought by MicroStrategy—almost four times what has been mined globally in 2026 so far—the price of Bitcoin itself has remained surprisingly stable.

Concerns were raised by cypherpunk and Casa co-founder Jameson Lopp, who tweeted doubts about whether MicroStrategy's Bitcoin is genuinely theirs or if it has been rehypothecated. He stated, "Does Strategy actually verify that their Bitcoin only belongs to them and isn't rehypothecated? I'm skeptical." Saylor quickly countered this assertion on X.

MicroStrategy utilizes third-party custodians such as Fidelity and Coinbase Prime. Lopp expressed skepticism about how Saylor could confirm that these custodians are not using their substantial Bitcoin holdings to generate yield by lending them out.

Rehypothecation occurs when a financial institution such as a bank or broker takes assets owned by a client and uses them for its purposes, like lending them to others or using them as collateral. This controversial practice can lead to a "paper claim" on the original assets, posing a risk to the rightful owner if for some reason the custodian fails—as seen in the cases of FTX, Celsius, and BlockFi.

Saylor explained that "real Bitcoin" refers to an asset that is genuinely owned and held in a specific address on the blockchain, while "rehypothecated Bitcoin" may be promised to multiple parties, creating uncertainty about ownership. Lopp further challenged this by saying, "People ask for proof of reserves since they don't even know what monitoring or assurances you put in place."

In summary, Saylor's clarifications aim to reinforce confidence in MicroStrategy’s Bitcoin holdings amid ongoing concerns about asset management practices in the cryptocurrency space.

Saylor: 'We Buy Real Bitcoin'