Michael Saylor Opposes Onchain Proof-of-Reserves

Michael Saylor warns that onchain proof-of-reserves could lead to cyberattacks, supports traditional audits for security.

Aurelien Sage May 28, 2025 - 1:53 AM

Michael Saylor speaks on risks of onchain proof-of-reserves

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Michael Saylor calls onchain proof-of-reserves a security risk
Strategy avoids public wallet disclosures to protect users
Prefers conventional financial audits over blockchain transparency

MicroStrategy co-founder Michael Saylor has voiced strong concerns about the growing trend of using blockchain-based proof-of-reserves. In a recent discussion, Saylor argued that making wallets and reserve information public on-chain could be a serious security threat.

Instead of adopting onchain verification methods, MicroStrategy is choosing a more traditional path—external audits. Saylor believes this approach provides better protection for both users and institutions, keeping sensitive data out of public view.

Security Risks Behind Public Wallets

Saylor’s key argument is centered on cybersecurity. Publishing wallet addresses as part of an onchain proof-of-reserves process makes them visible to the entire internet. This, he warns, invites hackers and puts billions of dollars at risk.

Cyberattacks and data breaches have become increasingly common in the crypto world. By keeping wallet addresses hidden and avoiding public blockchain disclosures, companies can limit exposure and improve safety for users and stakeholders.

🔥 NEW: Michael Saylor says onchain proof-of-reserves is a bad idea and exposes users and institutions to cyberattacks and data breaches, Strategy won't reveal wallets, opts for traditional audits instead. pic.twitter.com/ekRUB3ELNf
— Cointelegraph (@Cointelegraph) May 27, 2025

Choosing Trustworthy Audits Over Blockchain Transparency

Rather than embracing blockchain transparency, Saylor believes in the credibility of conventional audits. These audits are conducted by licensed professionals who review a company’s holdings in a controlled, private environment.

While some in the crypto community see onchain proof-of-reserves as a step toward transparency, Saylor stresses that real accountability comes from trustworthy audits, not public exposure. This approach, he says, builds trust without creating new security vulnerabilities.

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