Michael Saylor, co-founder and executive chairman of Strategy (formerly MicroStrategy), has firmly rejected the idea of publishing onchain proof-of-reserves, calling it a “bad idea” that introduces significant security threats.
Onchain Transparency? Not for Strategy
Speaking at a sideline event ahead of Bitcoin 2025 in Las Vegas, Saylor responded to a question about whether Strategy would adopt proof-of-reserves, a practice many crypto firms embraced post-FTX for onchain transparency. His answer was clear: “It dilutes the security of the issuer, the custodians, the exchanges, and the investors.”
Saylor likened public wallet disclosures to “publishing the addresses and bank accounts of all your kids”, emphasizing that such transparency doesn’t enhance security — “It creates an attack vector for hackers, nation-state actors, and trolls.”
Proof of Reserves Misses the Bigger Picture
The underlying issue, according to Saylor, is that proof-of-reserves fails to address liabilities — a critical component of financial transparency. “You want institutional-grade proof of assets and liabilities with them netted out,” he stressed. Simply showing a wallet balance “won’t protect you from a meltdown.”
Instead, Saylor believes the gold standard for companies like Strategy lies in audited financial statements—verified by a Big Four auditor and signed by a public company’s CEO, CFO, and board. This level of oversight, he claims, is far more credible and secure than any wallet snapshot.
Open to Zero-Knowledge Proofs — With Caution
While Saylor remains skeptical, he did not entirely rule out proof-of-reserves. He expressed openness to zero-knowledge proofs (ZKPs) that conceal wallet addresses, but warned that any such implementation must be cleared by custodians, exchanges, auditors, and risk managers.
“Publishing a simple wallet you can track is a crypto parlor trick,” he said. “It’s interesting if you’re an exchange, but not suitable for institutional-grade investors.”
Strategy’s Latest Bitcoin Purchase
Meanwhile, Strategy continues to double down on Bitcoin. On May 27, the firm announced it had bought 4,020 BTC for $427.1 million, bringing its total holdings to 580,250 BTC, worth over $63.5 billion. This represents 2.7% of Bitcoin’s total supply, with unrealized gains of approximately $23 billion.