Michael Saylor Dismisses On-Chain Proof-of-Reserves Over Security Concerns

By: Eva Baxter

In a controversial yet clarifying stance, Michael Saylor, the executive chairman of Strategy, formerly known as MicroStrategy, has expressed strong reservations against using on-chain proof-of-reserves (PoR) as a transparency measure for institutions holding Bitcoin. Speaking at the Bitcoin 2025 conference held in Las Vegas, Saylor argued that revealing on-chain reserves poses a significant security threat, opening companies and their clients to a myriad of risks including potential attacks from hackers and other malicious entities.

Saylor's statements came in response to a query posed by Blockware analyst Mitchell Askew on whether Strategy, the largest corporate holder of Bitcoin, would consider publicly sharing its Bitcoin wallet information. Instead of confirming or denying any such plans, Saylor warned that publishing wallet addresses might expose the firm to various 'attack vectors,' thereby constituting a liability. According to him, "If you publish your wallets, that's an attack vector for hackers, nation-state actors, and every type of troll imaginable. It creates so much liability you should think twice before you ever do it."

While Saylor's contention focuses on the security vulnerabilities of PoR, he also emphasized that it provides only a partial view of a company’s financial situation. His viewpoint is that although PoR initiatives can confirm a firm’s asset holdings, they fail to account for liabilities and other operational risks that impact a company’s financial health. Consequently, this limited disclosure can potentially mislead stakeholders and market observers about the viability of an institution's financial standing.

The crypto community reacted swiftly, with varying opinions regarding Saylor’s remarks. Some proponents of PoR argue that the method doesn’t compromise the security of one’s assets; rather, it reinforces trust through transparency. Despite the surrounding debates, corporations and crypto exchanges like Binance have adopted PoR to rebuild trust after events such as the collapse of FTX in 2022. Blockchain analytics firm Arkham Intelligence has reportedly tracked nearly all of Strategy's Bitcoin holdings despite the firm's reluctance to disclose such information. Regardless, Saylor remains steadfast in his stance, prioritizing the firm's security over public transparency.