Strategy has consistently dismissed the idea of making proof of reserves publicly available, citing various reasons for this stance. Recently, Chairman Michael Saylor, CEO Phong Le, and Executive Vice President Andrew Kang elaborated on their continued hesitation and underscored that improved transparency is attainable.
Summary
- During a recent earnings call, Strategy’s executives expressed their reluctance to unveil proof of reserves.
- They highlighted concerns about security, the potential disruption of the market due to custodial changes, extensive third-party audits, and staffing limitations as reasons for the lack of on-chain transparency.
- Michael Saylor and Phong Le indicated that they would consider proof of reserves only if it could be enacted “responsibly.”
“We’re working on responsible ways that we could provide that transparency”
On July 31, 2025, during their Q2 earnings call, Strategy facilitated a Q&A session. Benchmark’s Mark Palmer asked whether proof of reserves could be “a pertinent factor for the company at this time.” He noted that the trustlessness of Bitcoin enhances its allure and referred to another cryptocurrency asset management firm that has already published proof of reserves.
In response, Michael Saylor mentioned that the company is actively looking for ways to boost transparency. “We’re working on responsible methods to provide that transparency,” he stressed. By “responsible methods,” Saylor was referring not only to the safety of Strategy, which could be jeopardized by exposing proof of reserves, but also to the broader crypto market environment. He pointed out situations where the announcement of Galaxy Digital’s sale of 80,000 BTC stirred “chaos” in crypto X and beyond.
Saylor aims to avoid alarming stakeholders during “routine custody adjustments” and causing market disruptions, thus believing it prudent to keep Strategy’s wallet addresses confidential. He asserted that in light of the increased scrutiny on wallet transactions on X, it is better to maintain opacity in Strategy’s dealings.
Alternatively, CEO Phong Le shared his perspective, stating that Strategy is a U.S. public company characterized by “high dividend yields” and “superior performance through intelligent leverage.” He emphasized that diverting more resources to manage the complexities of proof of reserves would detract from the multiple benefits provided to Strategy’s clients.
Here’s what he elaborated:
“We have 15 people working on this. Can you imagine if we had to pull two to work on proof of reserves? You wouldn’t see Stretch, you wouldn’t see Strike, you wouldn’t see Strife, or witness all the other product innovations that are currently prioritized.”
In alignment with Saylor, Le reassured that once a viable method for increasing transparency is identified, they will take action.
Andrew Kang, the Executive Vice President, also addressed the concerns surrounding Strategy’s hesitance to disclose proof of reserves. He reminded Palmer and the audience that Strategy’s reserves undergo audits by two of the Big Four accounting firms, occurring quarterly or at least annually.
Michael Saylor had reservations about transparency previously
The crypto community has been advocating for Strategy to reveal proof of reserves for quite some time. As of August 4, 2025, Strategy claims to hold 628,791 bitcoins; however, doubts persist regarding the actual ownership of this volume by the company.
Some speculate that Strategy may possess these bitcoins but caution that without proof of reserves, the company could silently sell parts of its BTC. Given that independent audits occur only once a quarter, the intervals between can create uncertainty.
While few openly demand proof of reserves from Strategy, Saylor frequently finds himself clarifying the company’s position on transparency. In a video shared on X in May, Saylor articulated that posting Strategy’s wallet addresses would be akin to disclosing the personal details of one’s own children, believing such disclosure would harm the family’s welfare.
Regarding the effects of substantial transactions noted by Saylor, the situation with Galaxy Digital’s sale of 80,000 BTC led to minor short-term fluctuations, and the overall market response was relatively muted, as the community remains cognizant of Bitcoin’s resilience, which Saylor actively promotes.
Does Michael Saylor have the responsibility to disclose Strategy’s Bitcoin wallets publicly?
Steve Gregory, the founder of VTrader exchange, engaged in a thoughtful examination of whether Saylor should publicly disclose Strategy’s wallet addresses. Here’s his viewpoint:
The primary question is: does Michael Saylor of MicroStrategy have the duty to disclose Strategy’s Bitcoin wallets openly?
Before delving into this, consider a few points. As of the end of July, he holds over 629,000 Bitcoin valued at over $46 billion — roughly 3% of all mined Bitcoin. Clearly, any movement within Strategy’s wallets could create significant ripples in the markets. Even a mere wallet rebalancing might trigger panic selling.
Many in the crypto space know that alerts can be set up for known wallet activities, meaning that any activity would instantly notify interested parties. This contrasts with traditional markets, where notifications about such actions are usually retrospective. Even when insiders at the company may decide to sell shares, the public generally does not learn of this until weeks later.
Conventionally, markets have circuit breakers to mitigate dramatic volatility. For example, if Strategy’s shares were to fall at the Nasdaq’s opening bell by, say, 20%, trading would initially be halted after a 7% drop for 15 minutes. If it then dropped by 13%, there would be another pause for 15 minutes. If shares plunged by 20%, trading would be suspended for the remainder of the day. These circuit breakers help manage excessive volatility and maintain market order.
Now, apply this reasoning to the crypto markets. If Strategy’s wallets all moved simultaneously and transferred BTC to exchanges such as Coinbase, VTrader, Gemini, or Kraken — and such activities were visible on-chain — it could incite a panic sell-off. Without protective measures, the markets could suffer a dramatic devaluation of Bitcoin, possibly by 50%, 70%, or even 99% in extreme situations.
We observed a similar phenomenon during the March 2020 crash when nothing prevented Bitcoin from plummeting 50% within hours.
In my perspective, Michael Saylor has staked his entire company, reputation, and likely personal fortune on Bitcoin. He intends to shield the asset on which he has made such a substantial bet. The most secure strategy is to refrain from publicly disclosing the locations of his wallets.
Conversely, Strategy is a public entity that must undergo annual audited financials. Furthermore, the accounting standards for public companies are significantly more stringent compared to general audited financials. This heightened level of scrutiny is vital for maintaining robust U.S. capital markets. Rigorous standards build trust.
Saylor and Strategy are aware that at least annually, every single wallet holding their Bitcoin is audited, triple-checked, and validated by their Big Four accounting firm. Additionally, numerous analysts on Wall Street and AI bots examine their public financial reports, disclosures, and communications with the market.
While it is accurate that public companies can and sometimes do engage in fraudulent practices, the safeguards for public organizations make such actions considerably more challenging.
Some might argue that Saylor and Strategy’s choice not to publicly disclose their wallets contravenes the foundational principles of crypto. However, this perspective is somewhat misguided since it involves a public blockchain, where wallets can be identified with the appropriate tools. Moreover, if one believes in maintaining market integrity, this approach is prudent to avert unintentional market panic.
Proof of reserves is not a trend
In 2024, Bitwise became the first cryptocurrency asset management firm to unveil proof of reserves by publishing the address of its spot Bitcoin ETF reserves in January 2024. By July 2025, Bitwise introduced third-party proof of reserves for both its Bitcoin and Ethereum ETF holdings.
On one hand, Bitwise has not established a precedent, as no other sizable, reputable firm within the crypto sector has emulated its transparency. On the other hand, it has successfully protected its assets, raising questions about Saylor’s claims regarding the security risks associated with transparency.
Additionally, it is possible to track a significant amount of Strategy’s assets through blockchain data compiled by Arkham Intelligence. This firm has identified about 90% of Strategy’s holdings, yet Saylor seems unfazed by this knowledge. His unease about disclosing Strategy’s addresses appears somewhat unwarranted. However, it should be noted that Arkham’s accuracy may not be flawless.
As Saylor has mentioned before, Strategy might contemplate leveraging a zero-knowledge solution to enhance transparency in the future, allowing verification of their Bitcoin possession without revealing their addresses. It remains unclear how crucial this issue is, particularly in light of platforms like Arkham existing.
