Strategy (Nasdaq: MSTR), earlier known as MicroStrategy, co-founder and executive chairman Michael Saylor thinks companies posting on-chain proof-of-reserves is a “bad idea.”
Strategy that began acquiring Bitcoin as a primary treasury asset in 2020 is the world's largest public corporate BTC holder. It holds 580,250 BTC worth $63 billion on its balance sheet.
Once the FTX crypto exchange went bankrupt in November 2022, several crypto firms, such as Binance and Kraken , began publishing proof-of-reserves. It is a transparency mechanism used by crypto exchanges and other crypto-focused companies to publicly demonstrate that they hold enough assets to cover all user deposits.
However, Strategy isn't one of such companies.
"The current, conventional way to publish proof-of-reserves is an insecure proof of reserves. It actually dilutes the security of the issuer, the custodians, the exchanges and the investors," Saylor said. "It’s not a good idea, it’s a bad idea."
Saylor was responding to a question on his firm's plan, or lack thereof, to post proof-of-reserves during an event on May 26 ahead of the Bitcoin 2025 conference in Las Vegas.
Saylor argued that publishing proof-of-reserve is like publishing the addresses, bank accounts, and phone numbers of your kids in the hope of their safety, but it actually makes them more vulnerable.
"You publish your wallet, that's an attack vector for hackers, nation-state actors, every type of troll imaginable," Saylor continued. He recommended self-custody and a Big Four auditor verifying asset ownership and liabilities of a company like Strategy.
As per Kraken , Bitcoin was trading at $109,219 at press time, up 4.5% over a week.
Michael Saylor issues stern advice to companies first appeared on TheStreet on May 27, 2025