MicroStrategy, the corporate Bitcoin pioneer, is facing renewed scrutiny over the legitimacy of its massive 712,647 BTC treasury, valued at approximately $54.19 billion. Community members, including security researcher and CasaHODL founder Jameson Lopp, have raised questions about whether the firm is buying "real Bitcoin" or if its holdings involve rehypothecated coins—often called "paper BTC"—where custodians might use the assets for other purposes.
In response, MicroStrategy's founder and chairman, Michael Saylor, issued a firm denial on social media, stating, "We buy real Bitcoin. We audit our custodians. We don't rehypothecate. You shouldn't either." The debate intensified after Saylor announced the company's latest purchase of 2,932 BTC for about $264.1 million, bringing its total holdings to the stated figure as of January 25, 2026.
On-chain analysis reveals complexities in tracking the full stash. Approximately 420,000 BTC are held with custodians Coinbase and Anchorage Digital in segregated addresses, making them traceable and tracked by platforms like Arkham. Another 185,000 BTC is reportedly held with Fidelity Custody. However, because Fidelity does not use segregated wallets for clients, these holdings are challenging to verify on-chain.
This leaves over 110,000 BTC of MicroStrategy's claimed holdings unaccounted for across its three primary custodians (Coinbase, Anchorage, and Fidelity), a point highlighted by analyst Sani, founder of Timechainindex. This opacity is the core of the community's skepticism, with critics questioning if the firm truly owns the entire 712,647 BTC it claims.
Cryptographer Adam Back entered the debate to defend MicroStrategy, pointing to the institutional-grade nature of its custodians. He emphasized that firms like Fidelity and Coinbase undergo rigorous oversight from Big 4 auditors who verify asset existence, key control, and security, making claims of "paper BTC" from credible sources unlikely.
The controversy has coincided with market pressure. MicroStrategy's stock (MSTR) fell about 2% to around $157-$158, following a broader 1.5-1.7% decline in Bitcoin's price after the latest FOMC meeting. Despite the daily drop, MSTR remains up nearly 2% over the past month and over 4% year-to-date, often correlating with BTC's price movements.
Adding context to MicroStrategy's aggressive accumulation, the firm invested roughly $20 billion in BTC in 2024 and another $23 billion in 2025. So far in 2026, it has acquired over 40,150 BTC for close to $4 billion—a buying rate that rivaled the 11,700 BTC mined globally in the same period, leading some analysts like Jesse Myers to predict a future supply-driven price rally.
