Michael Saylor Rejects Bitcoin Reserve Evidence, What’s the Reason?

Jakarta, Pintu News – Michael Saylor, the head of Strategy (formerly known as MicroStrategy), recently rejected calls to publish the proof of reserve (PoR) of Bitcoin (BTC) holdings reported by his firm.

At a Bitcoin conference in Las Vegas, Saylor stated that PoR is a bad idea and a security risk. According to him, PoR is currently irrelevant without an audit of institutional liabilities. Saylor argues that for secure verification of crypto reserves, companies audited by the Big 4 such as PWC and KPMG are the best option.

Crypto Community Reaction to Saylor’s Statement

Many members of the crypto community disagreed with Saylor’s opinion. Whale Panda, a market watcher, called Saylor’s stance a ‘big red flag’. Pledditor, another observer, added that while PoR might compromise privacy, overall it does not compromise the security of the coin.

Pledditors think that Saylor may have something to hide or does not fully understand how Bitcoin (BTC) works. The concept of PoR gained momentum after the FTX crash in 2022, which occurred due to the massive misuse of customer funds.

Also Read: Whale’s Big Sale of SAND, Will Prices Plummet as Early as June 2025?

Transparency vs Security: The Dilemma

On the one hand, the publication of PoRs by exchanges like Kraken has been initiated to guarantee transparency. However, on the other hand, revealing wallet addresses with funds can attract threat actors. This discussion is not about who is right or wrong, but about finding a balance between transparency and security.

Currently, Strategy owns 580,250 BTC or 2.7% of the total supply, with a value of approximately $63.46 billion. The cost of acquisition is reported at $40 billion, which means the company has an unrealized gain of more than $22 billion.

Financial Implications and Market Risk

However, only $35 billion BTC of holdings have been successfully tracked by Arkham. Saylor has stated publicly that he will not sell BTC holdings and will always buy at the top. However, any selling by Strategy, breaches, bankruptcies, or other negative updates could drag down the price of Bitcoin (BTC) and the crypto market as a whole.

This is a risk concern that has been raised by the crypto community in the past, given the growing influence of the company in BTC supply. Strategy’s stock, MSTR, closed the May 26 trading session at $269, recording a loss of 7.5%.

Conclusion: Weighing Security and Transparency Needs

The debate on PoR highlights the challenges the crypto industry faces in maintaining a balance between security and the need for transparency. While there are valid concerns regarding privacy and security, investor confidence may depend on verifiable disclosure. Going forward, the industry may need to set clearer standards for auditing and verification of crypto reserves.

Also Read: BNB Nearing $700 Again – Time to Buy or Wait?

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Reference

• AMB Crypto. Why Michael Saylor thinks Proof of Reserves is a bad idea. Accessed on May 28, 2025
• Featured Image: CryptoSlate