Emre Yumlu 
Michael Saylor, the chairman of the Bitcoin-focused investment firm Strategy, described the practice of institutions publishing their crypto reserves onchain as a “bad idea.” According to him, such transparency steps may lead to potential security vulnerabilities.
Speaking at the Bitcoin 2025 conference held in Las Vegas, Saylor stated:
“The current methods used to publish proof-of-reserves are actually insecure.”
He added:
“This practice weakens the security of issuers, custodians, exchanges, and investors. It’s not a good idea—in fact, it’s quite risky.”
During the event, when asked whether Strategy would publish its own reserves, Saylor did not provide a direct answer.
What Proof-of-Reserves Shows—And What It Doesn’t
In the crypto world, especially among exchanges, proof-of-reserves is used to verify that a company holds enough crypto assets to match user deposits. This method is also employed by custodians and ETF issuers to enhance transparency.
However, Saylor points out a critical flaw in this system:
It only shows what the company holds, not what it owes. In other words, without knowing the company’s liabilities, the proof-of-reserves can’t fully guarantee trust.
Saylor: “Disclosing Wallet Addresses Undermines Security”
Saylor emphasized that no enterprise-level security expert would consider publishing all wallet addresses a smart move.
“If you ask an advanced AI system about the risks of publishing wallet addresses,” he said,
“it would generate 50 pages of potential threats. That’s how serious the problem is.”
A Post-FTX Trend That Gained Momentum
Following the collapse of FTX in 2022, the crypto industry faced a major transparency crisis. As a response, many firms began to publish their onchain reserves. Exchanges like Binance, Kraken, and OKX, along with some asset managers, adopted this approach to restore confidence.
Still, Saylor believes that a balance must be found between transparency and operational security.
Strategy Holds One of the Largest Bitcoin Treasuries
Strategy is currently the largest corporate holder of Bitcoin globally. The firm holds a total of 576,230 BTC, valued at approximately $62.6 billion. This makes them the top institutional Bitcoin investor in the market.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.