🔐 Bitcoin advocate and Strategy (formerly MicroStrategy) executive chairman Michael Saylor has issued a strong warning against a growing trend in the crypto industry—onchain proof of reserves. According to him, it’s a “bad idea” that could compromise the security of institutions and their clients.

🧨 Proof of Reserves? More Like an Invitation for Attackers, Says Saylor

During a side event at the Bitcoin 2025 conference in Las Vegas, Saylor criticized the practice of publishing institutional reserve data on the blockchain.

“What’s being called proof of reserves today actually undermines the security of everyone involved—exchanges, custodians, companies, and even investors,” he stated.

He declined to answer directly whether his own company, Strategy, would publish such data, instead warning of the risks of publicly revealing wallet addresses that hold billions in Bitcoin.

🚨 Transparency Without Context = A False Sense of Security?

Following the collapse of FTX in 2022, many crypto firms began disclosing proof of reserves to restore trust by showing what assets they actually hold. Major players like Binance, Kraken, OKX, and Bitwise adopted the approach.

However, Saylor reminded the audience that showing assets is not enough. “Revealing what a company holds doesn’t show what it owes,” he warned. He also argued that exposing wallet addresses opens firms up to unnecessary cybersecurity risks.

“If you ask an AI what happens when you publish every wallet address over time, it’ll give you 50 pages of security threats,” he said sarcastically.

🏦 Strategy Holds More Bitcoin Than Any Other Public Company

Strategy currently owns a staggering 576,230 BTC, worth around $62.6 billion at current prices. It’s followed by mining firm MARA Holdings, with 48,137 BTC.

Saylor noted that over 110 publicly traded companies now include Bitcoin in their corporate treasuries. Still, he warned that not all transparency practices are suitable for institutions, especially when they expose investors to elevated risks.

🧩 Takeaway: Transparency Is Good—But Not at the Expense of Security

Michael Saylor once again stresses that the crypto space must balance trust with protection. Excessive transparency, like publishing onchain reserves, could become the Achilles’ heel of firms that otherwise serve as strong pillars in the Bitcoin ecosystem.



#BTC , #MichaelSaylor , #MicroStrategy , #CryptoInvesting , #CryptoNewss

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