- Saylor rejects proof of reserves, citing security risks.
- Public wallet data exposes firms to cyberattacks.
- Strategy holds 576,230 BTC, worth $62.6 billion.
At Bitcoin 2025, which took place in Las Vegas on May 26, Michael Saylor, in his capacity as executive chairman of Strategy, sparked controversy by expressing his opinion on proof of reserves. At a sideline event, Saylor was asked if Strategy would publish its Bitcoin holdings on the blockchain.
Saylor quickly said no when questioned about it. He added, “It’s not a good idea because it could be dangerous.” He said that exposing wallet addresses may make institutions, custodians, exchanges, and investors more likely to be attacked online.
According to BitcoinTreasuries.NET, the largest holder of Bitcoin among companies is Strategy, with 576,230 BTC worth $62.6 billion each. It’s clear from his remarks that Saylor’s firm prefers safer methods like traditional audits instead of trusting the blockchain.
Security Risks of Proof of Reserves
Saylor highlighted the risks of using on-chain proof of reserves. When organizations make their wallet addresses public, the chance of being targeted by hackers rises. He pointed out that such detail online would be similar to sharing your bank account information, making companies vulnerable to bad actors.
He talked about particular threats. Wallet data could be used by hackers to monitor treasury transactions or send phishing emails. If they hold a significant amount of crypto, large holders like Strategy might end up losing money or struggling with their operations.
Saylor pointed out that information on reserves alone is not enough to judge the situation. “It isn’t enough to only show assets,” he said. A limited picture of an institution’s finances can only be seen with audited financial statements; on-chain proof alone is insufficient.
He argued traditional audits offer a safer way to go. The reviews done by accounting firms carefully examine all financial aspects of the company, but keep sensitive information safe. Because it follows this method, Strategy is known for providing top-quality security.
Industry Divide on Transparency
Because of scandals like the 2022 FTX collapse, the crypto industry is now relying more on proof of reserves to regain the public’s trust. Binance, Kraken and OKX are among the platforms that now let users confirm their crypto assets using the blockchain. The company Bitwise uses a safe method called “proof of holdings” for its crypto exchange-traded products.
Opacity in the FTX case highlighted the risks associated with it. The collapse of the exchange led to the discovery of its insolvency which cost investors billions. To ensure users about an entity’s finances, proof of reserves was introduced as a solution. For example, Kraken’s way of proving reserves uses cryptography to check assets safely.
However, Saylor believes differently from most companies. He claims that large Bitcoin holders find it too risky to be transparent. “On-chain proof is not only about trust; it’s about making sure we survive,” he said when speaking about the comparison to sensitive personal info.
The discussion is not limited to the Strategy practice. Custodians and smaller exchanges are urged to embrace proof of reserves so they can compete, but Saylor’s remarks are important to those who manage large amounts of Bitcoin. It remains difficult to keep data both open and secure.
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