Key Takeaways:
- Michael Saylor criticized onchain proof-of-reserves, calling it a security risk for institutions, custodians, and investors.
- He argued that disclosing wallet addresses could expose firms to significant vulnerabilities over time.
- Despite industry pressure post-FTX, Strategy has not committed to releasing its own proof-of-reserves.
Michael Saylor, executive chair of Strategy (formerly MicroStrategy), strongly criticized the use of onchain proof-of-reserves, calling it a major security risk for institutions.
Speaking at the Bitcoin 2025 conference in Las Vegas on May 26, Saylor warned that publishing wallet addresses and reserve data could expose custodians, exchanges, and investors to threats.
I asked @saylor if @MicroStrategy has any plans to publish on-chain proof of reserves
— Mitchell ✝️🇺🇸 (@MitchellHODL) May 27, 2025
His answer will SHOCK you
“It’s a bad idea.”
– Security Risk
– Irrelevant without also having Big 4-audited liabilities
Check it out 👇 pic.twitter.com/tIxUckgbEp
He described the current approach as an “insecure proof of reserves” and claimed “no institutional-grade security analyst” would support it.
When asked if Strategy would publish its own proof-of-reserves, he declined to comment.
Although proof-of-reserves gained popularity after the collapse of FTX in 2022 to boost transparency, Saylor argued they only show assets, not liabilities, which may give a false sense of financial strength.
He stressed that revealing wallet data allows for tracing and surveillance, posing long-term risks.
He even suggested asking AI to analyze the concept, saying it would return “50 pages of security problems.”
Despite industry adoption by Binance, Kraken, OKX, and Bitwise, Saylor believes institutional security should take precedence.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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