Updated on:12/25/2025 06:32 PM 
Strategy, the world's largest corporate Bitcoin holder with over 580,000 BTC, has announced it will not implement on-chain proof-of-reserves (PoR) verification for its massive cryptocurrency portfolio.
During a recent appearance at the Bitcoin 2025 conference in Las Vegas, company chairman Michael Saylor explained why the business remains hesitant about adopting this increasingly popular transparency practice in the cryptocurrency sector.
Responding to a question from Blockware analyst Mitchell Askew about potential plans to publicly disclose wallet data, Saylor outlined several concerns that prevent Strategy from embracing on-chain verification methods.
"On-chain proof-of-reserves creates unnecessary vulnerabilities that could expose our organization and our stakeholders to significant security risks," Saylor emphasized during the discussion.
The Bitcoin advocate further explained that while PoR can confirm asset holdings, it fails to provide a comprehensive view of a company's financial health by not accounting for liabilities or operational risks within the cryptocurrency ecosystem.
The chairman's statements triggered immediate criticism across various cryptocurrency platforms and social media channels.
Notable pseudonymous analyst Pledditor described Saylor's approach as "a giant red flag," suggesting that while privacy considerations are important, proof-of-reserve implementations don't necessarily compromise the security of digital assets.
"Transparency doesn't equal vulnerability when implemented correctly," the analyst countered.
Since the collapse of major exchange FTX in 2022, proof-of-reserve initiatives have gained substantial traction throughout the cryptocurrency industry. Leading exchanges like Binance have established regular PoR reporting schedules to rebuild user confidence following the industry's trust crisis.
Even Bitcoin spot ETF providers such as Bitwise have taken transparency a step further by publicly listing wallet addresses associated with their investment products, enabling real-time verification by the community.
Market analysts suggest these transparency measures align with fundamental principles of the Bitcoin ecosystem, which emphasizes verifiable ownership and auditability.
Despite holding approximately 580,000 Bitcoin—valued at billions of dollars—Strategy has maintained its position against implementing PoR verification, even as blockchain analytics firm Arkham Intelligence claims to have identified on-chain addresses linked to nearly all of the company's cryptocurrency holdings.
