Michael Saylor Questions Proof-of-Reserves Model, Cites Security Risks

Michael Saylor, co-founder of Strategy, is once again making waves in the crypto space—this time for his controversial take on proof-of-reserves (PoR).

Speaking at the Bitcoin 2025 conference in Las Vegas, Saylor argued that the current practice of publicly disclosing wallet addresses to verify asset holdings may pose more risks than benefits.

Though a viral video clip captured him calling PoR “a bad idea,” his broader message emphasized the flaws in the way it’s implemented today—not the core concept of transparency itself. Saylor contends that exposing wallet addresses opens the door to targeted attacks, surveillance, and systemic vulnerabilities. In his words, “This form of proof doesn’t just fail to protect—it actively weakens everyone involved, from issuers to investors.”

Rather than relying on raw blockchain data, Saylor believes high-level auditing—with the backing of a top accounting firm and executive sign-off—offers a more trustworthy standard. He also floated the idea of using zero-knowledge proofs (zk-proofs) in the future to strike a better balance between transparency and privacy.

Saylor went further, suggesting AI tools could be used to assess the full scope of risks associated with publishing wallet data. According to him, such analysis would generate extensive documentation on long-term security threats that most crypto firms overlook.