Saylor: ‘We Buy Real Bitcoin’

Strategy founder Michael Saylor recently took to the X social media network to clarify that the company actually buys real Bitcoin. 

The CEO asserts that MicroStrategy audits its custodians and rejects the dangerous practice of rehypothecation.

In a fiery exchange on X, the MicroStrategy founder pushed back against concerns raised by cypherpunk and Casa co-founder Jameson Lopp.

The debate began after Saylor announced MicroStrategy’s latest acquisition on Jan. 26. As reported by U.Today, the company purchased a total of 2,932 BTC for $264 million. This brought the firm’s total stack to a staggering 712,647 BTC following recent mammoth purchases. 

Despite the supply shock, Bitcoin’s price action remained eerily stagnant. MicroStrategy bought nearly 4x the amount of Bitcoin mined globally in 2026 so far, but the price barely budged. 

Lopp then caused quite a stir on social media by implying that Strategy does not actually buy real Bitcoin.

“Does Strategy actually verify that their bitcoin only belongs to them and isn’t rehypothecated? I’m skeptical,” he said. However, Saylor quickly took to X to reject this narrative. 

Rehypothecation, explained

MicroStrategy relies on third-party custodians (like Fidelity or Coinbase Prime). Lopp questioned how Saylor knows those custodians aren’t lending out his massive stack to generate yield.

Rehypothecation occurs when a bank or broker takes assets that belong to a client and uses them for their own purposes. Such an asset can be lent out to other parties or used as collateral for their own trades.

Such a controversial practice creates a “paper claim” on the asset. If the bank or the borrower fails (as seen with FTX, Celsius, and BlockFi), the original owner may find that their assets are gone.

“Real Bitcoin” means the unencumbered asset sits in a specific address on the blockchain. “Rehypothecated Bitcoin” implies that the same coin might be promised to multiple people.

“People ask for proof of reserves since they don’t even know what monitoring/assurances you put in place,” Lopp retorted.