Michael Saylor Rejects Public On-Chain Proof of Reserves: “It’s a Security Risk”
Strategy Chairman Michael Saylor has pushed back against the idea of publishing on-chain proof of reserves, calling the current practice fundamentally insecure and unsuitable for institutions.
Speaking on the topic of whether MicroStrategy would ever publish its group of on-chain reserves, Saylor emphasized that the conventional approach to proof of reserves actually weakens—not strengthens—security for stakeholders across the crypto ecosystem.
“A lot of people learned lessons from FTX, but not necessarily the lessons the institutional community needs to learn,” Saylor said. “The current method of publishing proof of reserves is insecure. It dilutes the security of the issuer, the custodians, the exchanges, and the investors. It’s a bad idea.”
“Proof of Reserves” Is Not Proof of Liabilities
Saylor pointed out a fundamental flaw in the way proof of reserves is currently implemented in the crypto industry: it typically only shows assets, not liabilities. This incomplete picture, he argues, gives a false sense of security while introducing new vulnerabilities.
“Most of what’s being presented as proof of reserves is actually just proof of assets. It doesn’t reflect the liabilities, and that matters a lot. If you’re not proving both sides of the balance sheet, you’re not proving anything of real value.”
Public Wallet Addresses Invite Long-Term Security Threats
Beyond the accounting shortcomings, Saylor strongly warned against publicly revealing wallet addresses. He compared the practice to exposing personal financial data for an entire family.
“It’s like publishing the addresses and bank accounts of all your kids—and their phone numbers—and thinking that somehow makes your family safer. It doesn’t. It puts them at risk.”
He explained that no serious enterprise security expert would ever advise making wallet addresses public due to the ability for anyone to trace every transaction, creating a permanent trail and opening the door to long-term threats.
“Ask an AI to list the security risks of publishing wallet addresses. You’ll get a 50-page book. This is not something any institutional-grade security team would endorse.”
A Call for Rethinking Crypto Security
Saylor’s comments make it clear that MicroStrategy has no intention of publishing its on-chain reserves under the current standards. He views the practice as incompatible with robust institutional security protocols and warns the industry to avoid being lulled into a false sense of transparency.
“If we really care about crypto security, we need to rethink the framework entirely. Publishing wallet addresses is not the solution.”
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
