Michael Saylor, executive chairman of Strategy, is pushing back against the growing trend of onchain proof-of-reserves in the crypto industry.
Author: Sahil Thakur
Michael Saylor, executive chairman of Strategy, is pushing back against the growing trend of onchain proof-of-reserves in the crypto industry. Speaking on May 26 at an event alongside Bitcoin 2025 in Las Vegas, Saylor argued that the practice exposes institutions to unnecessary security risks.
When asked if Strategy would publish its own proof-of-reserves, Saylor avoided a direct answer. Instead, he offered a broader critique:
“The current, conventional way to publish proof of reserves is an insecure proof of reserves. It actually dilutes the security of the issuer, the custodians, the exchanges and the investors.”
Saylor argued that making wallet addresses public—even for the sake of transparency—opens a door for cyberattacks. He described it as a “bad idea” from a security perspective, particularly for large institutional holders.
Proof-of-reserves became more common following the collapse of FTX in 2022. The practice aims to show that exchanges and custodians hold enough assets to cover user deposits. Companies like Binance, Kraken, OKX, and Bitwise have since adopted the model.
However, Saylor says proof-of-reserves only shows one side of the equation: what an entity holds, not what it owes. He emphasized that disclosing wallet addresses may help track assets, but it also makes the organization vulnerable to surveillance and targeted attacks.
“Go to AI, put it in deep think mode and then ask it: ‘What are the security problems of publishing your wallet addresses?’ It would write 50 pages of problems,” Saylor said.
Instead of publishing onchain data, Strategy prefers external audits. These are done in private by licensed professionals and don’t expose wallet-level data on the blockchain. According to Saylor, this method offers stronger protection without compromising trust.
This view runs counter to many in the crypto community who argue that blockchain-based transparency tools are essential after the industry’s recent failures.
Strategy remains the world’s largest corporate holder of Bitcoin. The firm currently holds 576,230 BTC, valued at over $62 billion. It’s far ahead of second-place MARA Holdings, which owns 48,137 BTC. As Bitcoin adoption among public companies grows, how firms choose to demonstrate solvency is becoming an increasingly relevant question.
Over 110 publicly traded companies now hold Bitcoin, each taking different approaches to transparency and security.
Saylor’s comments come amid a broader debate about how crypto institutions should prove solvency without compromising security. Critics of onchain proof-of-reserves warn of doxxing, cyberattacks, and a false sense of safety. Supporters say blockchain transparency is key to restoring trust after high-profile failures.
For now, Strategy has made its stance clear: security first, transparency through trusted audits—not public blockchains.
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