Michael Saylor faces backlash over supporting institutional Bitcoin custody

Michael Saylor, executive chairman of Bitcoin development firm MicroStrategy, recently dismissed concerns about government seizure of Bitcoin in an interview financial markets reporter Madison Reidy, according to Cointelegraph. Labeling those worried about such scenarios as "paranoid crypto-anarchists," Saylor suggested that transferring Bitcoin to institutional custody poses no risk, sparking debate within the crypto community. Sina, co-founder of 21st Capital, argued Saylor's stance reduces Bitcoin to just an investment commodity. Early BTC investor Simon Dixon noted that Saylor’s stance could be driven by MicroStrategy's potential business interests in becoming a Bitcoin bank, which would favor less emphasis on self-custody. This is a shift from his previous emphasis on the importance of self-custody to safeguard against incidents of corruption, such as the FTX collapse in 2022.