- Saylor rejects PoR as insecure, likening it to exposing private data; crypto community flags transparency concerns.
- Critics argue PoR ensures post-FTX trust; Saylor insists Big Four audits better secure $63B BTC holdings.
Michael Saylor has dismissed calls for the company to publish proof-of-reserves (PoR) for its 580,250 BTC ($63.46 billion) holdings. Speaking at the Bitcoin Conference in Las Vegas, Saylor argued that current PoR methods are insecure and expose firms to risks.
“Publishing proof-of-reserves dilutes security for custodians and investors. It’s like sharing your kids’ bank details and expecting safety” Saylor said. He emphasized that PoR lacks value without third-party audits of liabilities, recommending Big Four accounting firms like PwC or KPMG as trusted validators.
Community Backlash and Transparency Debate
Critics on social media labeled Saylor’s stance a “major red flag.” User Whale Panda countered, “Bitcoin’s essence is transparency. Rejecting PoR contradicts that.” Another commentator, Pledditor, suggested Saylor’s resistance might conceal undisclosed risks.
The PoR concept gained traction after FTX’s 2022 collapse, which revealed mismanagement of customer funds. Exchanges like Kraken now routinely publish PoR to rebuild trust. However, disclosing wallet addresses can attract hackers—a trade-off Saylor claims justifies his position.
Strategy holds 2.7% of Bitcoin’s total supply, acquired for $40 billion. With BTC priced near $109,000, the firm’s unrealized profit exceeds $23 billion. Blockchain tracker Arkham has verified only $35 billion of these holdings, leaving gaps in public verification.
Saylor has repeatedly vowed never to sell Strategy’s BTC, but market watchers warn that a forced sale—due to breaches, bankruptcy, or regulatory action—could destabilize Bitcoin’s price. Strategy’s stock (MSTR) fell 7.5% to $269 on May 26, mirroring Bitcoin’s volatility.
The dispute centers on balancing transparency with operational security. PoR proponents argue it prevents FTX-style fraud, while Saylor insists audits by established firms offer safer accountability.
As of now, Bitcoin (BTC) is trading at approximately $109,737, reflecting a modest 0.17% increase in the past 24 hours. Over the last week, BTC has shown a 2.56% gain, and its monthly performance is notably stronger with a 15.34% rise, suggesting positive momentum.
Year-over-year, Bitcoin has appreciated by 60.27%, indicating a resilient long-term trend. Currently, the price is consolidating just under $110,000, having recently flipped a former resistance at $103,000 into support.
ETHNews analysts highlight that if BTC stays below $112,000, potential short-term corrections could test $110,000, $108,000, or even $106,000. However, a break above $113,000 may open the way to new highs.
