Michael Saylor calls onchain proof-of-reserves a ‘bad idea,’ rules it out for Strategy over security concerns

Michael Saylor, co-founder of Strategy (formerly MicroStrategy), expressed strong opposition to publishing onchain proof-of-reserves, arguing the practice poses significant security threats to institutions and investors.

"It's like publishing the address and the bank accounts of all your kids and your phone numbers of all your kids, and then thinking somehow that makes your family better. It doesn't make your family better." — Michael Saylor on the risks of public wallet addresses.

Saylor's Security Analysis

Attack Vectors: Public addresses enable full traceability for hackers and nation-state actors.
Institutional Grade: No enterprise security analyst would recommend sharing wallet addresses publicly.
Transparency vs. Liability: Creating excessive liability while offering a false sense of security.

Many crypto firms adopted proof-of-reserve measures after FTX's collapse. However, Saylor argued that this approach dilutes the security of the issuer and custodians. Critics also note that such measures often omit audited fiat reserves and liabilities, failing to provide a full picture of financial health.