The post Saylor: ‘We Buy Real Bitcoin’ appeared on BitcoinEthereumNews.com. Strategy founder Michael Saylor recently took to the X social media network to clarifyThe post Saylor: ‘We Buy Real Bitcoin’ appeared on BitcoinEthereumNews.com. Strategy founder Michael Saylor recently took to the X social media network to clarify

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. 

You Might Also Like

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.

Source: https://u.today/saylor-we-buy-real-bitcoin

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Trend Research has liquidated its ETH holdings and currently has only 0.165 coins remaining.

Trend Research has liquidated its ETH holdings and currently has only 0.165 coins remaining.

PANews reported on February 8 that, according to Arkham data, Trend Research, a subsidiary of Yilihua, has liquidated its ETH holdings, with only 0.165 ETH remaining
Share
PANews2026/02/08 11:07
FCA, crackdown on crypto

FCA, crackdown on crypto

The post FCA, crackdown on crypto appeared on BitcoinEthereumNews.com. The regulation of cryptocurrencies in the United Kingdom enters a decisive phase. The Financial Conduct Authority (FCA) has initiated a consultation to set minimum standards on transparency, consumer protection, and digital custody, in order to strengthen market confidence and ensure safer operations for exchanges, wallets, and crypto service providers. The consultation was published on May 2, 2025, and opened a public discussion on operational responsibilities and safeguarding requirements for digital assets (CoinDesk). The goal is to make the rules clearer without hindering the sector’s evolution. According to the data collected by our regulatory monitoring team, in the first weeks following the publication, the feedback received from professionals and operators focused mainly on custody, incident reporting, and insurance requirements. Industry analysts note that many responses require technical clarifications on multi-sig, asset segregation, and recovery protocols, as well as proposals to scale obligations based on the size of the operator. FCA Consultation: What’s on the Table The consultation document clarifies how to apply rules inspired by traditional finance to the crypto perimeter, balancing innovation, market integrity, and user protection. In this context, the goal is to introduce minimum standards for all firms under the supervision of the FCA, an essential step for a more transparent and secure sector, with measurable benefits for users. The proposed pillars Obligations towards consumers: assessment on the extension of the Consumer Duty – a requirement that mandates companies to provide “good outcomes” – to crypto services, with outcomes for users that are traceable and verifiable. Operational resilience: introduction of continuity requirements, incident response plans, and periodic testing to ensure the operational stability of platforms even in adverse scenarios. Financial Crime Prevention: strengthening AML/CFT measures through more stringent transaction monitoring and structured counterpart checks. Custody and safeguarding: definition of operational methods for the segregation of client assets, secure…
Share
BitcoinEthereumNews2025/09/18 05:40
Bitcoin Steady as Fed Cuts Interest Rates for First Time Since December

Bitcoin Steady as Fed Cuts Interest Rates for First Time Since December

The post Bitcoin Steady as Fed Cuts Interest Rates for First Time Since December appeared on BitcoinEthereumNews.com. In brief The Federal Reserve had kept interest rates unchanged since last December. U.S. President Donald Trump has been hammering the Fed to cut rates. Crypto and other assets typically benefit from rate cuts that increase financial liquidity. The U.S. central bank, as widely expected, cut the federal funds rate by 0.25% Wednesday, amid recent signs that the economy was faltering and needed a boost—and under relentless pressure from President Donald Trump. Bitcoin and other major digital assets traded largely flat  in the immediate aftermath. The largest cryptocurrency by market capitalization was recently changing hands just above $116,000, up 0.2% over the past hour hours, according to crypto markets data provider CoinGecko. BTC rallied in recent days with investors possibly pricing in the anticipated decision. Ethereum, the second-largest cryptocurrency by market value, was trading at $4,501, flat over the same period. The Fed slashed the interest rate to a range between 4% and 4.25% after a downward revision in a Department of Labor report showing that the U.S had created 911,000 fewer jobs than initially reported for a year-long period ending in March, and other concerning economic signs. “Uncertainty about the economic outlook remains elevated,” the Fed noted in a statement. Those concerns outweighed the threat of inflation, which has risen to 2.9% on an annual basis, stubbornly above the bank’s longstanding 2% goal. Newly sworn-in governor Stephen Miran, a White House appointee, dissented from the decision, voting for a .50% rate cut. The Fed has a dual mission to keep inflation low and ensure full employment. In Telegram message to Decrypt, Noelle Acheson, the author of the Crypto Is Macro Now newsletter, wrote that the big deal wasn’t the expected rate cut but updated economic forecasts from Fed officials, showing that central bankers are “getting more nervous about the…
Share
BitcoinEthereumNews2025/09/18 14:49