Michael Saylor sparks outrage: Is he turning Bitcoin into just another bank asset?

MicroStrategy’s executive chairman, Michael Saylor, has faced backlash for his recent comments advocating for Bitcoin custodianship through “too big to fail” banks instead of self-custody, a stance he previously championed.

In an interview with financial markets reporter Madison Reidy, Saylor controversially suggested that Bitcoin holders have nothing to lose by transferring their BTC, currently priced at $67,515, to major financial institutions. This statement appears to starkly contrast with his earlier support for self-custody solutions.

Saylor’s controversial pivot sparks backlash 

When questioned about the possibility of state-sanctioned Bitcoin seizures—similar to the illegalization of gold holdings in 1933—Saylor dismissed such fears, labeling anyone concerned as a “paranoid crypto-anarchist.” He stated that it’s a myth and a trope that goes on over and over again. Saylor asserted that there’s just a lot of unnecessary fear surrounding the issue.

Rather than relying on hardware wallets, Saylor proposed that it would be safer to trust “too big to fail” banks, which he believes are designed to be custodians of financial assets.

His apparent shift away from advocating self-custody has not been well-received by many in the Bitcoin community. According to Sina, a founder of the Bitcoin custody and security firm 21st Capital , Saylor is on a mission to relegate Bitcoin into an investment pet rock and halt its usage as a currency.

Simon Dixon, an original Bitcoiner and author of – Bank to the Future – speculated that Saylor’s new stance undermines the importance of self-custody because it might not align with MicroStrategy’s long-term goal of becoming a Bitcoin bank that offers collateralized loans. “Bitcoin anarchists: keep helping people gain freedom from banks, governments & central banks,” Dixon added.

John Carvalho, CEO of Bitcoin payments firm Synonym, also criticized Saylor’s change of heart, questioning the meaning behind his previous claim that “Bitcoin is hope” for everyone while dismissing the concerns of self-custody advocates as mere paranoia.

“Saylor’s remarks aimed at institutional clients not individuals”

Following the collapse of FTX in November 2022, Saylor emphasized the importance of Bitcoin self-custody to prevent powerful custodians from abusing their influence:

In systems where there is no self-custody, the custodians accumulate too much power, and then they can abuse that power.

– Michael Saylor

He previously encouraged users to remember their 12-word seed phrases and to stand firm against external pressures.

However, not everyone condemned Saylor’s recent statements. Julian Figueroa, founder and host of “Get Based”, suggested that Saylor’s remarks were aimed at institutional clients rather than individuals, noting that while small businesses can use hardware wallets, larger organizations will require Bitcoin banks.

Mitchell Askew, head analyst at Bitcoin mining firm Blockware Solutions, remarked that Saylor was prepared to “stomach criticism” to make Bitcoin appear “less sketchy.” According to Bitcoin Treasuries data, MicroStrategy remains the largest corporate holder of Bitcoin, with a portfolio of 252,220 BTC valued at nearly $17 billion.