Bitcoin expert Michael Saylor, executive chairman of Strategy, considers publishing on-chain proof-of-reserves a detrimental idea due to its significant security implications.
When asked about organizations adopting the transparency measures at a May 26 event on the sidelines of the Bitcoin 2025 conference in Las Vegas, Saylor stated, “The current conventional way to publish proof of reserve is an insecure proof of reserve.
The commonly accepted method of sharing proof-of-reserve today is insecure, Saylor stated. It weakens the security posture of the entity issuing the reserve.
When asked whether Strategy would adopt this practice, Saylor declined to give a direct answer. The question came from Mitchell Askew, head analyst at Blockware Solutions.
Commonly used by cryptocurrency exchanges, proof-of-reserves confirms that the business has enough cryptocurrency reserves to cover client deposits. The necessary quantity of cryptocurrency for the funds can also be verified by other organizations, including crypto-tracking exchange-traded funds.
However, Saylor agreed that the industry could learn a lot from the failures of cryptocurrency exchanges. He stated that proof-of-reserves is not the best course of action for institutions.
Despite the desire for transparency, Saylor contended that disclosing wallet addresses exposes serious vulnerabilities. No experienced enterprise or institutional security expert would ever recommend revealing all wallet addresses, as it makes the entity traceable, he warned.
He then explained his point by suggesting a thought experiment: ask an AI to analyze the consequences of publishing your wallet addresses—it could generate 50 pages detailing the risks involved.
After the collapse of FTX in late 2022, many crypto exchanges, custodians, and ETF providers started embracing proof-of-reserves to build trust. However, Saylor believes this approach is flawed for institutions managing large sums of crypto assets.
Strategy, under Saylor’s leadership, remains the largest corporate holder of Bitcoin globally, currently owning approximately 580,250 BTC .
