On Tuesday, Michael Saylor, the Executive Chairman of MicroStrategy (NASDAQ: MSTR), riled up the Bitcoin part of the internet. At an event adjacent to Bitcoin 2025 conference in Las Vegas, Saylor was asked whether the company (rebranded as Strategy) has any plans to publish proof-of-reserves for its Bitcoin stash, presently holding 580,250 BTC (~$62.8 billion).

Answering the question, Saylor made it apparent he is not a fan of the idea because:

“It actually dilutes the security of the issuer, the custodians, the exchanges and the investors. It’s not a good idea, it’s a bad idea. It’s like publishing the addresses and the bank accounts of all your kids and the phone numbers of all your kids. And then thinking, somehow, it makes your family better.”

Many influencers have already likened such sentiment to Sam Bankman-Fried. It was during the collapse of his FTX crypto exchange when the term proof-of-reserves (PoR) was introduced to the wider public. This prompted Binance, the world’s largest crypto exchange, to implement its own PoR system in late 2022.

Others have also likened Saylor to Do Kwon, having headed the collapsed Terra (LUNA) blockchain project, powered by algorithmic stablecoins, yields, and Bitcoin reserves. After the catastrophic cascade of crypto bankruptcies during 2022, it is reasonable to be cautious, but is Michael Saylor’s stance as problematic as some make it seem?

Proof-of-Reserves Origin

Pushed by the collapse of Mt.Gox exchange in 2014, proof-of-reserves (PoR) was first floated as a way to instill trust in custodial institutions. Although Mt.Gox is commonly known as a hack, wherein up to 850k BTC was pilfered from hot wallets, the exchange was also mishandled outside technical security.

Namely, Mt.Gox CEO Mark Karpeles, was convicted for tampering with the exchange’s records in order to inflate the company’s holdings, Karpeles received a 2.5-year sentence that was suspended for four years in early 2019. Following the worst year of 2022 for the crypto sector, exchanges were scrambling to lift confidence.

Just using the example of imploded BlockFi, the vulnerability of asset holding follows a clear pattern across the board:

If a custodial institution holds 1 BTC, it generates a liability for the user for that 1 BTC. Otherwise, in a self-custodial scenario, the user would generate their own liability.

But what if the custodial party wants to increase attraction to their business?
Then the users’ holdings would be utilized to offer crypto-backed loans and yields on savings accounts.

Under the hood, this would mean that the ideal 1:1 redemption liquidity would be stretched to other parties. In the case of BlockFi, this was Three Arrows Capital (3AC).

And if liquidity is stretched (diluted), the initial depositor can no longer count on getting their 1 BTC as reliably in all market conditions.

This pattern created a PoR race in 2022, aiming to reveal which types of assets are covered, by how much, how frequently they are audited, and by whom.

However, even shortly after the FTX collapse, as Binance hurried to report its PoR, it became obvious there are some inherent problems with this approach.

PoR Usefulness

In the global system of fractional reserve banking, it is not possible to redeem all the money if all the banks’ clients were to suddenly attempt to withdraw. With that said, institutions checking on banks, such as FDIC, take into account both their assets and liabilities to determine their overall state of solvency.

Additionally, the central bank is the lender of last resort (LOLR), able to add funds electronically to the bank’s balance sheet. We have seen this in play in early 2023 during the regional banking crisis in the US. During this period, Bitcoin saw its first major rally after recovery from abysmal 2022.

That’s because Bitcoin, as a digital ledger available for public scrutiny, has embedded transparency. Every bit of its 21 million supply is recorded, backed by computing proof-of-work power. While Bitcoin does not natively include a Proof of Reserves mechanism, the visibility of balances and transactions enables external PoR audits when entities sign messages from their addresses.

If BTC addresses can be reliably linked to specific holders, further insight into asset ownership and distribution becomes possible. The problem is, how to check if entities holding BTC hold the amounts they claim to hold? There are multiple ways in which this can be manipulated:

• Prior to PoR attestation, the custodial could inflate reserves by temporarily borrowing assets. Therefore, audits would have to be randomized.
• A PoR snapshot as such doesn’t guarantee 1:1 reserves until the next snapshot.

At the end of the line, PoR audits are not standardized, which means there is loose space wherein exchanges can selectively disclose information, use varying methodologies, or omit critical details, ultimately undermining the consistency, transparency, and trustworthiness of the proof-of-reserves process.

Where Does MicroStrategy Fit In?

As you may have noticed, MicroStrategy is not a crypto exchange, but a publicly traded company with a propensity towards mixing software development with more conventional web3. As such, the company is obligated to file quarterly (10-Q) and annual (10-K) reports. On top of that, publicly traded companies have to file Form 8-K for unscheduled events and changes that concern shareholders’ bottom line.

All of this information is readily available through the SEC’s EDGAR system. In other words, Strategy already operates in a regulated arena with certain expectations. These cover the audit of their liabilities, assets, and equity holdings in the aforementioned reports, as well as acquisition costs and impairments.

But, Strategy would fall out of line if it were to suddenly start revealing BTC wallet addresses, for which there is zero obligation. Conversely, Strategy could incur liability and lose trust if on-chain activity would become a subject of scrutiny, misinterpretation, and hacking attempts.

Moreover, if Strategy’s BTC holdings are held in cord storage or multi-signature wallets, which is likely, public disclosure of wallet addresses would go against custodial best practices which are also regulated. In short, by doing so, Strategy would be perceived as a very unserious company.

What Is Strategy’s Overall Target?

Strategy’s overall goal remains the same – raise capital by selling new MSTR shares to buy more Bitcoin, as an appreciating asset due to its fixed scarcity. As of Q1 2025, Strategy reported 65% completion of this “21/21” plan to raise $42 billion.

To attract investors, Strategy launched Series A Perpetual Strike Preferred Stock (STRK) with an 8% cumulative annual dividend. From June 30th, STRF is another perpetual preferred stock with a dividend at 10%, payable quarterly. Other than offering higher yield, STRF is also non-convertible as a form of risker income that could go up to 18%.

In other words, these are yields for diluting shares in order to buy Bitcoin. And investors would buy MSTR shares instead of Bitcoin itself because demand creates a premium to its net asset value (NAV). It also bears remembering that many investors don’t want the responsibility of self-custody or thinking through risk management, which is why MSTR, a regulated stock on NASDAQ, makes for an attractive Bitcoin proxy.

At the end of the line, Michael Saylor is not printing new Bitcoin and not overleveraging to the extreme extent we’ve seen with SBF or Do Kwon. In an interview to Financial Times, he noted that “Bitcoin could fall 90% and stay there for four or five years, and we would still be stable,”

The Bottom Line

It could be the case that, for some reason, Bitcoin crashes in the age of institutional adoption and Strategic Bitcoin Reserve. Consequently, MSTR stock would crash as well.

However, such a scenario would be far removed from concerns related to Strategy’s proof-of-reserve, whether it would be adopted as a plan or discarded as a liability. Ultimately, the relevance of PoR as applied to Strategy seems a conflation of categories.

Or rather, it seems that the justified energy gained from harsh 2022 lessons is misdirected.

The post Proof-of-Reserves: Is it applicable to MicroStrategy? appeared first on CryptoSlate.

Remember the time when Crocs were the universal symbol of an ugly a$$ shoe?

(I know, some people still think it’s ugly. And they’re not entirely wrong.)

But you can’t argue they haven’t become iconic. Everyone’s wearing them, they’ve done collabs with Naruto, Balenciaga, and Post Malone…

And honestly…Bitcoin is kinda the Crocs of finance.

This might sound offensive now that I think about it. But hear me out.

People used to clown on BTC. Now, though? Eeeveryone wants a piece. Just look at how fast companies are adopting it.

The latest to join the club? K Wave Media – a South Korean entertainment company that makes K-content, sells K-pop merch, and invests in Korean film and music projects.

They signed a deal to raise up to $500M and put it toward… you guessed it – Bitcoin.

And they’re not just gonna invest – they’re going all-in:

• Holding BTC in their treasury;

• Using BTC yields to buy more BTC;

• Letting fans buy content and K-pop merch with Bitcoin.

Basically, they want to be the “Metaplanet of Korea.”

(If you haven’t been following, Metaplanet is a BTC treasury company that people call the “Strategy of Japan” – Strategy being Michael Saylor’s BTC treasury company.)

So… does that make K Wave… the Strategy of Japan of Korea? We’ll let you untangle that one.

Uhh, anyways. Speaking of Metaplanet…

They bought another 1,088 BTC this week at an average price of $108.4K each.

This brings their total holdings to over 8,888 BTC and makes them the 8th-largest corporate holder of Bitcoin worldwide.

Which is cool and all…

But BTC maxi Max Keiser isn’t fully sold on this new wave of corporate Bitcoiners.

He pointed out that Saylor has already proven his diamond hands, as he held through the brutal bear market in 2022-23 without selling a single coin.

Meanwhile, these newcomers haven’t been through that kind of pain yet.

So the question is:

Will they keep buying when the market bleeds? Or will they fold when things get rough?

Max says: probably the latter. But that’s anyone’s guess.

Oh, and before we go, if you’re wondering what all this corporate BTC stacking might actually do to Bitcoin… we covered that in a previous deep dive → check it out here.

Plus: Ledger wants your Nano S to retire gracefully

GM. The markets are like a pineapple today – spiky, confusing, but still part of the cocktail. Let’s dig in.

Strategy vs Twenty One.

News drops: Mango Markets exploiter’s sentencing, Binance’s new rules + more

Market flavor today

Might as well start calling it pto, ’cause we’re done cryin’

While the hype has cooled off a bit compared to yesterday, overall the mood is still pretty glonky – Bitcoin remains above $90K, and investor sentiment remains in the greedy zone.

Basically, things are getting comfy again, and it’s showing up in the way people are handling their BTC. A lot of it’s being moved off exchanges – matter of fact, it’s the biggest outflow of Bitcoin from exchanges since February 2023.

Translation: people aren’t planning to sell anytime soon, and that usually means less volatility and a more stable market.

And it’s not just where the Bitcoin is going – it’s who’s holding it.

Bitcoin is moving from short-term holders to long-term holders.

• Since January, people who’ve held their BTC for over 155 days have added more than 635K BTC;

• In contrast, short-term holders have reduced their exposure by 461K BTC.

This reallocation matters because long-term holders tend to be less reactive to price swings. More supply in steady hands = fewer panic sells.

That kind of setup is a solid place to be. Let the glonkiness continue.

Don’t let your wallet go sour

• Why use a washing machine when I’ve got hands and the local pond?!

• Why call a taxi when I’ve got a thumb and the gift of conversation?!

• Why upgrade my Ledger when my Nano S is still kickin’?!

Well, uhh… because it’s gonna be better for you?..

And now’s the perfect time – Ledger’s giving Nano S users 20% off new devices.

It’s their way of saying “thanks for sticking around” and also “maybe it’s time to level up your security.”

Upgrade your Nano S – it’s done its job. Let it retire in peace.

Memecoin harvest

If stupidity is a superpower, these coins are the Avengers

Data as of 06:40 AM EST.

Check out these memecoins and plenty more here.

Every gym’s got that gym bro. You know, the one who’s been bulking since forever, has a protein schedule, you pull up at 3 AM on a random Tuesday – he’s there. The staff doesn’t even check his membership anymore – he is the gym.

Now imagine a new guy arrives. He’s not huge (yet), but he’s got that look. That dawg in him. That “give it three months and I’ll outlift you” attitude.

In this story, the OG gym bro is Strategy (MicroStrategy, if you’re traditional) – the heavyweight champ of Bitcoin-holding companies.

And the new arrival? That’s Twenty One.

Twenty One is a new Bitcoin treasury company founded by Jack Mallers – the dude behind Strike – and supported by some serious names: Tether, SoftBank Group, Bitfinex, and Cantor.

Their game plan? Go public through a blank-check merger with Cantor Equity Partners. In plain English, they’re teaming up with a shell company to skip the whole traditional IPO mess and speedrun onto the Nasdaq.

If all goes as planned, you’ll see them trading under the ticker XXI, but only after they raise $585M.

Now, the juicy part: they wanna launch with 42,000 BTC (around $3.9B worth). This would make Twenty One the third-largest corporate Bitcoin holder, behind just Strategy and MARA.

Quite bold. And Mallers isn’t shy about it either – he said they’re not here to “beat the market,” they’re here to build a new one.

To make things even juicier – Twenty One straight-up said it could be a better choice for investors who want efficient Bitcoin exposure than Strategy.

The logic is that Strategy already holds a whole lotta Bitcoin – over 534K BTC – so any new purchases don’t make that much of a difference in terms of value per share (aka BPS: Bitcoin Per Share). Basically, the more BTC they have, the harder it is to make each share more valuable.

Meanwhile, Twenty One is small (for now), which means every Bitcoin they add could have a much bigger impact on shareholder value.

Underdog attitude aside, let’s break down the gains and the pains of Twenty One.

Pros:

• Starts small = more potential relative growth;

• Built for BTC from the ground up – everything in the company is measured in BTC;

• No existing debt = flexibility early on.

Cons:

• Brand new, unproven execution;

• Might need to raise capital aggressively (debt/dilution risk);

• Tiny compared to Strategy – MSTR’s got deep pockets and name recognition;

• No track record vs. MicroStrategy’s high-profile BTC strategy and strong following.

So, yeah, it could be promising, but it’s not objectively superior to MSTR – it’s just positioned differently.

MSTR has scale, momentum, and trust. Twenty One has potential and a better starting point on paper.

And you know what’s the best part? No matter who wins this flex-off, it’s still gonna be bullish for Bitcoin. More players, more attention, more corporate BTC stacking.

Enjoy the gains.

News drops

Binance is adding some extra rules for users in South Africa. Starting April 30, you’ll need to share details about whoever you’re sending crypto to or getting it from – otherwise, no deposits or withdrawals will go through.

Ex-SEC Chair Jay Clayton is now the temporary US Attorney for the Southern District of New York. However, he can only stay in the role for up to 120 days because Senator Schumer didn’t approve the usual appointment process.

Avraham “Avi” Eisenberg, who was found guilty of stealing $110M from Mango Markets, is gonna get sentenced soon. Prosecutors want him to get between 6.5 and 8 years in prison.

Yuga Labs wants nearly $400K in crypto from wallets tied to Jeremy Cahen (aka Pauly0x). They’re still battling over a 2022 lawsuit where Cahen and Ryder Ripps launched an NFT collection that looked a lot like Bored Apes.

KuCoin is growing its presence in Southeast Asia. They’re planning to launch a crypto exchange in Thailand.

Juicy memes

Strategy (formerly MicroStrategy) has expanded its Bitcoin holdings past 500,000 BTC following its latest acquisition.

In a March 24 filing with the US Securities and Exchange Commission (SEC), the company disclosed the purchase of 6,911 BTC for approximately $584.1 million, or an average of $84,529 per BTC.

The new addition brings MicroStrategy’s total stash to 506,137 BTC. The company has now spent approximately $33.7 billion on its Bitcoin investments, with an average cost of $66,608 per coin. Given current market prices, the firm holds an unrealized profit estimated at over $10 billion.

This milestone strengthens MicroStrategy’s role as the largest corporate holder of Bitcoin by a wide margin. Its holdings now represent approximately 2.55% of the 19.8 million BTC currently in circulation.

Moreover, the scale of MicroStrategy’s Bitcoin exposure is even more striking when compared to other major holders.

The firm owns nearly half the amount held by all 12 US spot Bitcoin exchange-traded funds (ETFs), which cumulatively hold around 1.1 million BTC.

It also holds nearly half the amount believed to be owned by Bitcoin’s mysterious creator, Satoshi Nakamoto, whose estimated stash is also 1.1 million BTC.

HK Asia Holdings (HK1723) announced a purchase of Bitcoin through a series of transactions on an open market crypto exchange platform on 20 Feb.

The company acquired approximately 7.88 BTC at an aggregate consideration of HK$5,936,906.26 (US$761,705.07, excluding transaction costs), financing the investment exclusively with internal resources. The purchase, which follows an earlier Bitcoin acquisition announced on 16 Feb, brings the Group’s total holding to about 8.88 BTC, with an average cost of HK$756,209.74 per unit.

The aggregated investment remains below the 5% threshold specified under Chapter 14 of the Listing Rules, so the transaction does not trigger notifiable reporting requirements. Joint Offerors have consented to the initial and subsequent transactions, and shareholders are advised to exercise caution when dealing with the company’s shares.

The filing arrives amid a broader strategic realignment that has redirected HK Asia Holdings’ focus toward digital assets and blockchain technology. The company’s earlier purchase of 1 BTC was emblematic of its emerging commitment to a digital-first approach—a pivot further underscored by its recent board appointments.

Figures associated with BTC Inc. and Sora Ventures have joined the leadership team, reinforcing a strategy that now encompasses Web3 initiatives and innovative financial instruments.

The measured execution of the latest Bitcoin acquisition, structured to stay within regulatory thresholds, may reflect a deliberate effort to balance exposure to volatile digital asset markets while leveraging in-house liquidity.

HK Asia Holdings’ incremental buildup of Bitcoin positions aligns with the recently announced MicroStrategy 2.0 plan to integrate Bitcoin into traditional companies’ portfolios. The transaction’s scale and timing suggest a strategic posture aimed at capitalizing on potential market opportunities while adhering to the regulatory frameworks governing Hong Kong’s capital markets. By limiting aggregated crypto exposure below critical notifiable levels, the company appears to manage risk without compromising its broader strategic objectives.

As the company undergoes a significant transformation following the majority acquisition by UTXO Management, Sora Ventures, and other partners, the new leadership is now actively involved in day-to-day operations and steered the company toward a rebranding initiative expected to culminate in a new identity—Moon Inc.—reflecting its long-term commitment to digital assets.

HK Asia Holdings’ price hit an all-time high of 6.6 HKD following the announcement.

Mentioned in this article