Michael Saylor backs Bitcoin self-custody for those willing and able

MicroStrategy’s executive chairman, Michael Saylor, has attempted to clarify his position on Bitcoin custody.

This is following a slew of community backlash over his recent controversial comments favoring institutional custody solutions. His latest statement supports a more inclusive approach to Bitcoin custody options.

What triggered the crypto community?

The controversy began when Saylor suggested in an interview with financial markets reporter Madison Reidy that Bitcoin holders would be better served by transferring their BTC to major financial institutions rather than maintaining self-custody.

He even dismissed concerns about potential state-sanctioned Bitcoin seizures, comparing them to the 1933 gold confiscation, as unfounded.

Saylor also advocated for custody through “too big to fail” banks, suggesting they would provide safer custody solutions than hardware wallets.

Saylor gives clarity on his statement

Following intense criticism from the cryptocurrency community, including Ethereum co-founder Vitalik Buterin, Saylor issued a new statement on X.

“I support self-custody for those willing & able, the right to self-custody for all, and freedom to choose the form of custody & custodian for individuals & institutions globally” Saylor tweeted.

He also added that Bitcoin benefits from all forms of investment by all types of entities and should welcome everyone.

I support self-custody for those willing & able, the right to self-custody for all, and freedom to choose the form of custody & custodian for individuals & institutions globally. #Bitcoin benefits from all forms of investment by all types of entities, and should welcome everyone.

— Michael Saylor⚡️ (@saylor) October 23, 2024

Buterin’s response to Saylor’s original comments was particularly pointed. While acknowledging his own past promotion of certain Bitcoin narratives, Buterin labeled Saylor’s institutional custody advocacy as “batshit insane.”

He criticized Saylor’s apparent support for a regulatory capture approach, stating, “There’s plenty of precedent for how this strategy can fail, and for me it’s not what crypto is about.”

The controversy is particularly noteworthy given MicroStrategy’s major position in the Bitcoin market. According to Saylortracker, the company currently holds 252,220 Bitcoin.

The value of the holdings is approximately $16.97 billion at the current market price of $67,300 per BTC. Bitcoin is currently struggling to sustain the $67,000, with no clear indication of what’s next.