Unraveling the Bitcoin Custody Debate: Michael Saylor’s Strategic Moves
The world of cryptocurrency is fraught with discussions and controversies, and Michael Saylor’s recent strategy has sparked a renewed debate on Bitcoin custody. This conversation was ignited when Casa’s co-founder and CTO, Jameson Lopp, questioned whether Saylor’s firm could genuinely ensure their holdings aren’t being rehypothecated by third parties. Saylor’s straightforward response, “We buy real bitcoin. We don’t rehypothecate,” quickly became a pivotal point in the wider argument about what constitutes “proof” for a public company that stores Bitcoin with institutional custodians.
Accumulation Strategy: A Closer Look
Saylor’s accumulation strategy has been gaining momentum in early 2026. On January 26, he announced that his company had purchased 2,932 BTC for approximately $264.1 million, with each Bitcoin costing around $90,061 on average. By January 25, the company had amassed 712,647 BTC, acquired for about $54.19 billion at an average cost of $76,037 per coin. This bold disclosure sparked commentary from industry observers like Jesse Myers, who highlighted the structural supply constraints posed by Strategy’s purchasing pace. Myers pointed out that the company has acquired 40,150 BTC in 2026, while only 11,700 BTC were mined year-to-date, suggesting an inevitable upward pressure on Bitcoin’s price.
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Is There Such a Thing as “Paper Bitcoin”?
Lopp challenged the assumption that all purchases equate to unencumbered, uniquely owned Bitcoin UTXOs, questioning whether Strategy truly verifies that their Bitcoin holdings are not subject to rehypothecation. Saylor’s brief but firm denial, “We buy real bitcoin. We don’t rehypothecate,” did not satisfy Lopp, who expanded the discussion to the incentives and opacity surrounding intermediaries. Lopp raised concerns about whether custodians could be rehypothecating Bitcoin, urging for proof of reserves to assure stakeholders of the integrity of their holdings.
The Call for Transparency
As the debate intensified, users on social media called for Strategy to publish their Bitcoin addresses, demanding transparency. Some argued that such transparency could pose risks, potentially opening up vulnerabilities to traditional financial institutions if made public. However, defenders of Saylor’s approach cited the robust controls inherent in public-company operations, emphasizing the role of auditors in verifying balances and ensuring accountability.
The Role of Auditors and Custodians
Attorney Jesse Kobernick from Miller Nash LLP highlighted that Strategy’s filings detail the steps taken by auditors to verify balances and maintain control, involving multiple third parties in the process. Yet, Lopp remained skeptical of these assurances, describing trusted third parties as potential security vulnerabilities. Bitcoin veteran Adam Back pointed to the involvement of reputable custodians like Fidelity and Coinbase as a reason to downplay fears of “paper bitcoin,” stressing the rigorous verification standards they adhere to.
Despite these assurances, Lopp questioned whether auditors are thoroughly verifying balances and ensuring no duplicate claims on Bitcoin. The lack of transparent verification processes left him, and many others, unconvinced of the true security of such holdings.
Conclusion: The Ongoing Debate
On January 28, Saylor reiterated his stance by stating, “We buy real bitcoin. We audit our custodians. We don’t rehypothecate,” emphasizing the importance of stringent audits. He also advised others to follow suit to ensure the integrity of their Bitcoin holdings. As of now, Bitcoin is trading at approximately $88,001, a testament to the ongoing complexities and dynamics of the cryptocurrency market.
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