Strategy Defends Bitcoin Address Disclosure Stance Amid Skepticism

Strategy, a prominent corporate holder of Bitcoin, has faced scrutiny over its reluctance to disclose its Bitcoin addresses, leading to speculation about the authenticity of its holdings. On May 26, 2025, Michael Saylor, the chairman of Strategy, addressed these concerns, explaining why the company would not publish its Bitcoin addresses.

As of May 27, 2025, Strategy claims to hold 580,250 bitcoins following its latest purchase of $427 million. Saylor has repeatedly stated that Strategy has no plans to sell any of its bitcoins. However, the lack of full disclosure of Strategy’s addresses has raised doubts among skeptics about whether the company truly holds the amount it claims. Despite repeated demands for transparency, Saylor has not disclosed the addresses until his recent explanation.

In January 2025, it was reported that approximately 96% of Strategy’s Bitcoin addresses had been identified and published. However, the company did not confirm the authenticity of these addresses. The remaining 4% of Bitcoin funds, valued at billions of dollars, has raised concerns among skeptics who demand full disclosure.

In a speech published on May 27, 2025, Saylor acknowledged the lessons learned from the failures of Mt. Gox and FTX but argued that the conventional method of publishing proof of reserves is insecure. He believes that disclosing public addresses puts several stakeholders at risk, including the issuer, custodians, exchanges, and investors. Saylor compared this to publishing personal information about one’s family, which he believes does not enhance security.

Saylor emphasized that Strategy is a publicly traded company with institutional investors, and the demand to reveal wallets is more aligned with Bitcoin maximalist logic. He recommended that Bitcoin maximalists hold their bitcoins in self-custody rather than relying on Strategy. For securities investors, he advised relying on proof of assets and proof of liabilities, stating that the best practice is not to publish wallet addresses. He highlighted that Strategy’s audits are conducted by KPMG LLP, a Big Four audit company, and that the Sarbanes-Oxley Act protects investors from inaccurate disclosures.

Saylor suggested that in the future, Strategy might implement zero-knowledge proof of reserves, which would not reveal wallet addresses publicly. However, this would not exempt Strategy from confirming all data independently by involved parties and Big Four auditors. He also emphasized that the lesson from FTX and Mt. Gox was not the lack of proof of reserves but the risk of doing business with "shaky offshore exchanges run by juvenile tweakers."

Saylor concluded his speech by warning that publishing wallet addresses creates significant liability, making them a target for hackers and nation-state actors. He acknowledged that publishing addresses at a small level is acceptable but noted that no other large company holding bitcoins follows this practice, with Bitwise being the only exception.

Public reaction to Saylor’s speech was mixed. Some found his explanation convincing, while others saw it as an excuse to hide shady operations. Binance founder Changpeng Zhao jokingly tweeted, "he probably sold bitcoins," subtly responding to Saylor’s speech. Skeptics argue that Bitcoin wallets are unhackable, and thus, Saylor has no valid reason for not publishing proof of reserves. Defenders of Saylor’s stance claim that disclosing wallets is not secure due to the risk of key leaks at some level.

If hackers associate Strategy’s addresses with certain institutions, they could use social engineering or other tactics to obtain private keys. Trust in Strategy remains tied to the trust in public companies, as Saylor advises those who want full control over addresses to hold bitcoins themselves.