Michael Saylor Rejects On-Chain Proof of Reserves, Sparks Controversy

MicroStrategy co-founder Michael Saylor has stirred debate in the crypto community after rejecting the idea of publishing on-chain proof of reserves. In a recent statement, Saylor argued that revealing wallet addresses poses serious security concerns, stating, “No institutional-grade or enterprise security analyst thinks it’s a good idea to publish all of the wallet addresses… so that you can be traced back and forth.” He compared it to publishing the bank accounts and phone numbers of children.

Saylor’s stance has drawn backlash from transparency advocates in the crypto space. Bitcoin veteran Stefan Jespers, known as “Whale Panda,” labeled the remarks a major red flag, emphasizing that transparency is a core tenet of Bitcoin. Critics argue that proof of reserves can be done safely, citing examples like Bitwise’s "proof of holdings" system for crypto ETPs and various crypto exchanges that maintain transparency without jeopardizing security.

The controversy has reignited old criticisms of Saylor, with some questioning whether MicroStrategy holds actual Bitcoin or merely “paper BTC.” Detractors also revisited Saylor’s infamous $6 billion loss in 2000 tied to an accounting scandal, suggesting a pattern of questionable financial practices.

While Saylor insists his position is rooted in security, many in the crypto world view his refusal as a blow to the movement’s commitment to openness. As Bitcoin trades near $115,000 and investor interest soars, the debate over transparency and trust continues to intensify, especially among institutional players and long-term holders. The clash highlights the growing divide between traditional corporate practices and decentralized financial principles.