Speaking at a side event during the Bitcoin 2025 conference in Las Vegas, Saylor called the transparency trend “a bad idea.”
He warned that proof of reserves could endanger investors and institutions alike. “Publishing wallet addresses is like handing over a treasure map,” Saylor said. “It dilutes the security of the issuer, the custodian, the exchange, and ultimately, the investor.”
Why Saylor Says Proof-of-Reserves Is Risky
Proof-of-reserves is a method used by crypto companies to prove they hold enough assets to back customer deposits. This practice gained momentum after the shocking collapse of FTX in 2022. Exchanges like Binance, Kraken, and OKX now use it as a transparency tool, and even asset managers like Bitwise have followed suit. But Saylor argues that this approach may be doing more harm than good, especially when used by institutions.
“If you list all wallet addresses, it allows malicious actors to trace your activity,” he warned. “No institutional-grade security analyst would recommend that.” When pressed on whether Strategy would publish its reserves, Saylor sidestepped the question, instead pointing to security concerns.
I asked @saylor if @MicroStrategy has any plans to publish on-chain proof of reserves
His answer will SHOCK you
“It’s a bad idea.”
– Security Risk
– Irrelevant without also having Big 4-audited liabilitiesCheck it out
— Mitchell
(@MitchellHODL) May 27, 2025
He emphasized the asymmetry of proof-of-reserves—it shows assets but not liabilities. “You’re only seeing one side of the balance sheet,” he said. In other words, the numbers might look strong, but without knowing what the company owes, it’s impossible to assess its actual solvency.
Balancing Transparency and Security
After FTX, transparency became the name of the game. Over 110 publicly traded companies now hold Bitcoin, with Strategy leading the pack at 576,230 BTC, worth around $62.6 billion. The second-largest holder, MARA Holdings, holds 48,137 BTC, according to BitcoinTreasuries.NET.
— Next Layer Capital (@nextlayercap) April 16, 2025
Saylor isn’t arguing against transparency itself—he’s cautioning against how it’s implemented. Publishing detailed wallet information might seem like a trust-building move, but it could open the door to attacks or long-term threats.
Disclaimer
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