tl;dr
Michael Saylor, chairman of Strategy (formerly MicroStrategy), rejected on-chain proof-of-reserves (PoR) disclosure for the company's large Bitcoin holdings at the Bitcoin 2025 conference, citing security risks and potential liabilities. He argued that publishing wallet data exposes firms to hackers...
Michael Saylor, chairman of Strategy (formerly MicroStrategy), rejected on-chain Proof-of-Reserves (PoR) disclosure for the company's substantial Bitcoin holdings at the Bitcoin 2025 conference. He cited significant security risks and potential liabilities, warning that publishing wallet data exposes firms to hackers, nation-state actors, and various malicious entities, creating attack vectors and liability concerns.
Saylor emphasized that PoR fails to provide a complete financial picture, as it only confirms asset holdings without accounting for liabilities and operational risks. He suggested this limitation could mislead observers regarding a company’s overall financial health.
The crypto community responded critically to Saylor’s stance. Some analysts accused him of misunderstanding Bitcoin security or having ulterior motives to conceal information. A pseudonymous analyst on Pledditor labeled his comments a “giant red flag,” arguing that PoR does not inherently compromise asset security.
In contrast to Strategy’s position, many in the industry have embraced PoR as a transparency measure, especially following the 2022 FTX collapse. Major crypto exchanges like Binance and Bitcoin spot ETF providers have published wallet addresses tied to their reserves to restore and maintain user trust, aligning with the transparency ethos of the Bitcoin ecosystem.
Despite holding over 580,000 BTC, Strategy has yet to adopt on-chain PoR disclosure. Nonetheless, blockchain analytics firm Arkham Intelligence claims to have identified nearly all of Strategy’s Bitcoin addresses, effectively tracking their holdings on-chain.