Michael Saylor, chairman of Bitcoin holding firm Strategy, has denied community claims that the company purchases derivatives or “paper BTC.” He stated the firm buys real Bitcoin and audits its custodians. The scrutiny arises as over 110,000 BTC of Strategy‘s reported 712,000 BTC holdings are not publicly traceable on-chain.
Michael Saylor has publicly dismissed allegations that his firm, Strategy, buys rehypothecated Bitcoin. “We buy real Bitcoin. We audit our custodians. We don’t rehypothecate. You shouldn’t either,” he stated on social media.
The company, historically known as MicroStrategy, claims to hold over 712,000 BTC. Its aggressive accumulation included roughly $20 billion worth in 2024 and another $23 billion in 2025. So far in 2026, the firm has acquired over 40,000 BTC for nearly $4 billion.
This buying activity has led some analysts to predict a supply-driven price rally. Security researcher Jameson Lopp, however, questioned the underlying assumption. “Your thesis is sensible… under the assumption that he’s buying real bitcoin,” Lopp noted.
On-chain analysis shows only about 415,000 BTC of Strategy‘s holdings are traceable in segregated wallets at custodians Coinbase and Anchorage. An additional 183,000 BTC reportedly sent to Fidelity Custody is not easily verifiable due to its wallet structure.
This leaves over 110,000 BTC unaccounted for across its three custodians, a point highlighted by critics. Saylor has not publicly provided on-chain proof for these specific holdings. Meanwhile, the company’s MSTR stock price declined about 2% following broader market movements.
