Michael Saylor, CEO of MicroStrategy, delivered a scathing critique of on-chain proof-of-reserves during the Bitcoin 2025 Conference. He argued that this practice exposes investors to increased security risks and diminishes financial transparency within the cryptocurrency ecosystem. Saylor’s concerns echo past failures like FTX and Mt. Gox, pushing for greater transparency in institutional holdings of assets like Bitcoin. He points out that while exchanges initially adopted on-chain proof-of-reserves following industry scandals, this approach does little to enhance security or transparency. 2025 conference attendees were surprised by Saylor’s stance as major exchanges continue to utilize this method.