MicroStrategy’s Commitment to Genuine Bitcoin
In a recent discussion on the X social media platform, MicroStrategy’s founder, Michael Saylor, emphasized that his company is committed to acquiring genuine Bitcoin and dismisses the practice of rehypothecation. Saylor responded to skepticism raised by prominent cypherpunk and Casa co-founder Jameson Lopp regarding MicroStrategy’s Bitcoin holdings after announcing the firm’s latest purchase on January 26.
Recent Acquisitions and Market Reaction
This acquisition involved purchasing 2,932 BTC for approximately $264 million, which has brought MicroStrategy’s total Bitcoin holdings to an impressive 712,647 BTC due to recent large-scale acquisitions. Despite these substantial purchases, the market reaction has been surprisingly muted, with Bitcoin’s price remaining relatively stable. Notably, in the first months of 2026, MicroStrategy has purchased nearly four times the amount of Bitcoin that has been mined worldwide.
Concerns Over Rehypothecation
Lopp voiced his concerns on social media, questioning whether MicroStrategy verifies that their Bitcoin holdings are truly theirs and not subject to rehypothecation – a process where financial institutions borrow against an asset that belongs to a client. This practice raises potential risks that the original owner might lose their assets if the lending institution fails, as evidenced by past instances with companies like FTX and Celsius.
Saylor’s Defense and Custodial Practices
Saylor quickly retorted on X, defending his company’s safeguards. He explained MicroStrategy uses reputable third-party custodians such as Fidelity and Coinbase Prime, and he contended that these custodians do not lend out their extensive Bitcoin holdings to generate additional revenue.
The Importance of Asset Security
The distinction between “real Bitcoin” and “rehypothecated Bitcoin” is crucial; the former is stored in a single blockchain address without liabilities, while the latter might be promised to multiple parties, creating uncertainty about ownership. Lopp’s inquiry about proof of reserves highlights a growing demand among investors for transparency regarding custodial practices in the cryptocurrency sector, particularly given past market disruptions.
Saylor’s staunch defense of MicroStrategy and its investment practices reflects ongoing debates in the crypto community regarding asset security and reserve verification amidst fluctuating market confidence.
