Strategy’s Michael Saylor rejects on-chain Proof-of-Reserves due to ‘liability’

Strategy, formerly known arsenic MicroStrategy, is improbable to follow on-chain proof-of-reserves (PoR) disclosure for its important Bitcoin holdings.

At the Bitcoin 2025 league successful Las Vegas, the institution chairman, Michael Saylor, dismissed the signifier arsenic a imaginable information threat, saying it exposes firms and users to unnecessary risks.

Saylor made the comments portion responding to Blockware expert Mitchell Askew, who asked whether the world’s largest firm holder of Bitcoin would see publically sharing its wallet data.

Rather than corroborate oregon contradict specified plans, Saylor argued that revealing on-chain reserves creates onslaught vectors for malicious actors.

According to him:

“If you people your wallets, that’s an onslaught vector for hackers, nationstate actors, each benignant of troll imaginable. It creates truthful overmuch liability you should deliberation doubly earlier you ever bash it.”

Saylor besides pointed retired that PoR doesn’t connection a implicit representation of a company’s fiscal health.

The Bitcoin bull acknowledged that portion the inaugural tin corroborate a firm’s plus holdings, it doesn’t relationship for liabilities oregon operational risks, which could perchance mislead observers astir a firm’s fiscal health.

Community slams Saylor’s statement

His remarks sparked contiguous backlash from parts of the crypto community.

Pseudonymous expert Pledditor called the comments “a elephantine reddish flag,” arguing that portion privateness concerns are valid, PoR doesn’t needfully compromise plus security.

The expert said:

“[PoR] does NOT compromise the information of your coins. Saylor either has thing to hide, oregon he’s wholly ignorant astir however Bitcoin works.”

Over the past years, PoR initiatives person gained mainstream adoption pursuing the shocking illness of FTX successful 2022.

Since then, respective crypto exchanges, including Binance, person published regular PoR to regain idiosyncratic trust. In fact, Bitcoin spot ETF providers similar Bitwise person besides publicly listed wallet addresses tied to their products to enactment real-time verification.

Market observers said these moves align with the halfway ethical principles of transparency wrong the BTC ecosystem.

However, contempt holding implicit 580,000 BTC, Strategy has not followed suit.

Still, blockchain analytics steadfast Arkham Intelligence claims it has tracked down on-chain addresses linked to astir each of Strategy’s Bitcoin trove.

The station Strategy’s Michael Saylor rejects on-chain Proof-of-Reserves owed to ‘liability’ appeared archetypal connected CryptoSlate.