Bitcoin Critic Demands Strategy To Reveal BTC Proof-of-Reserves, What’s The Reason?
Highlights
- Bitcoin critic Pledditor questioned Strategy's Proof-of-Reserves for its Bitcoin stack.
- His remarks come as BTC price has shown limited movement deposite the aggressive accumulation by the Michael Saylor-backed firm.
- Prior to this, Strategy paused its Bitcoin buying spree, as announced by Saylor on Sunday.
New controversy arose over the context of corporate transparency around Bitcoin reserve disclosures, especially in the case of Strategy. A pseudonymous critic called “Pledditor” urged the firm to disclose proof-of-reserve disclosures of its massive BTC holdings.
Strategy Asked To Disclose Proof-of-Reserves For Bitcoin Holdings
On X, the critic did not go so far as to directly make allegations against Michael Saylor’s Strategy. Rather, he questioned the subdued market impact despite the company buying billions worth of Bitcoin.
“I’m not accusing Saylor of anything,” Pledditor wrote. He added, “But when you purchase nearly ~3% of the BTC supply over the span of 1.5 years, and you don’t move the BTC price, a reasonable person would be asking to see those proof of reserves.”
The remark soon began to spread amongst Bitcoin maximalists. However, the company is yet to respond to this demand.
Earlier, longtime Bitcoin critic Peter Schiff also took a dig at Strategy and noted that the BTC price is bound to fall despite the company buying more BTC. He even said that if the company completes its target of holding 5% of the Bitcoin supply, it would hardly make any impact on the price.
Strategy Halts BTC Buying Activity
Also, it’s important to note that Pledditor’s comments come at a point when Strategy has temporarily abandoned its aggressive Bitcoin buying pattern. In a more recent update, Saylor announced the pause, writing “No buys this week.”
The statement marked a departure from the trend of four weeks of continuous acquisitions. Moreover, despite raising $82 million via its ATM stock offering, not opting to buy BTC is viewed as a strong decision.
Saylor also released the highly popular Orange Dots chart, which they earlier used to indicate buying activity. However, he hinted at potentially resuming Bitcoin acquisitions by next week.
Strategy has been slowing down, but the Bitcoin holdings of Strategy are still high. The company has more than 818,000 BTC which it has acquired at an average price of about $75,537 per coin.
The latest acquisition it made is worth about 3,273 BTC worth $255 million at an average price of nearly 77,906. It was interesting to note that this was a drastic decrease in the buying scale with the previous acquisitions.
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