MicroStrategy Unlikely to Adopt On-Chain Proof-of-Reserves for Bitcoin Holdings
MicroStrategy, now known as Strategy, is hesitant to embrace on-chain proof-of-reserves (PoR) disclosure for its significant Bitcoin holdings, according to company chairman Michael Saylor.
During the Bitcoin 2025 conference in Las Vegas, Saylor expressed concerns about the potential security risks associated with publicly sharing wallet data, dismissing the practice as a security threat.
When asked by Blockware analyst Mitchell Askew about the possibility of Strategy publicly disclosing its wallet data, Saylor highlighted the vulnerabilities that come with such transparency:
“If you publish your wallets, that’s an attack vector for hackers, nation-state actors, every type of troll imaginable. It creates so much liability you should think twice before you ever do it.”
Saylor also emphasized that while PoR can confirm a company’s asset holdings, it fails to provide a comprehensive view of its financial health by overlooking liabilities and operational risks.
Community Response and Criticisms
Following Saylor’s remarks, some members of the crypto community criticized his stance on PoR disclosure. Pseudonymous analyst Pledditor argued that PoR does not compromise asset security and suggested that Saylor may be either ignorant about Bitcoin’s workings or have something to hide.
Despite the pushback, Strategy has not followed the trend of other crypto exchanges and entities that have adopted PoR initiatives to enhance transparency and regain user trust.
Blockchain analytics firm Arkham Intelligence claims to have identified on-chain addresses linked to most of Strategy’s Bitcoin holdings, highlighting the company’s reluctance to publicly disclose such information.
Conclusion
While the debate surrounding on-chain PoR disclosure continues, Strategy’s decision to refrain from publicizing its Bitcoin wallet data reflects its cautious approach towards security and transparency in managing its substantial cryptocurrency holdings.
As the crypto industry evolves, the balance between privacy concerns and the need for transparency remains a key consideration for companies like Strategy navigating the complexities of digital asset management.