Strategy, the pioneering corporate entity known for its extensive Bitcoin treasury, is currently navigating fresh skepticism regarding the authenticity and traceability of its vast BTC holdings. Despite consistent denials from Chairman Michael Saylor, claims of the firm potentially buying "paper BTC" or engaging in rehypothecation have ignited a debate among crypto community members and analysts, raising questions about the true nature of its massive digital asset stash.
Scrutiny Over Strategy's Bitcoin Acquisition
The firm has garnered significant attention for its aggressive accumulation strategy, amassing over 700,000 BTC and investing billions into the cryptocurrency over the past few years. This robust buying, which at one point in 2026 rivaled the total mined BTC supply for the year, has led some analysts to predict future price rallies due to a supply crunch. However, the muted market response has prompted security researchers like Jameson Lopp to question the underlying assumption: whether Strategy is truly acquiring "real Bitcoin." Lopp specifically raised concerns about custodians potentially rehypothecating the firm's holdings, a practice Michael Saylor emphatically denies, stating, "We buy real Bitcoin. We audit our custodians. We don’t rehypothecate. You shouldn’t either."
The Challenge of Untraceable Holdings
A significant element fueling this controversy is the traceability of Strategy's Bitcoin. While approximately 420,000 BTC held with Coinbase and Anchorage are considered traceable due to the use of segregated addresses, a substantial portion remains opaque. Over 183,000 BTC sent to Fidelity Custody are challenging to verify on-chain as Fidelity does not separate wallets like other custodians. More critically, over 110,000 BTC across its custodians are currently untraceable, according to analysts. This lack of verifiable on-chain evidence for a sizable chunk of its proclaimed holdings forms the core of critics' arguments, who are openly questioning whether Strategy genuinely possesses the full amount of Bitcoin it claims, with Michael Saylor yet to publicly provide definitive proofs for these specific untraceable assets.
