Block, the online payment company led by Jack Dorsey, has implemented a proof-of-reserves system for both its own Bitcoin treasury and its products Cash App and Square. This step, which allows the 8,883 Bitcoins held by the company to be verified transparently via digital signature on the chain, stands out as one of the important binding steps taken by some companies in the name of transparency in the crypto market.
Companies’ transparency moves and the FTX effect
After the collapse of the FTX exchange in 2022, many crypto companies began to turn to onchain proof of reserve applications to prove that their assets were actually in their safes. Block also joins this trend, stating to its users that both its own treasury and the Bitcoins held in Cash App and Square can be independently confirmed at any time. In their statement, the company management states, “People should not have to trust that their Bitcoins are there, they should be able to verify them in person,” and emphasizes that these reserves are checked instantly.
With this system implemented by Block, 8,883 Bitcoins, or 681.4 million dollars, on the company’s balance sheet can be verified on the chain for everyone to see. This amount is the 14th highest Bitcoin balance among corporate treasuries.
Big players and different approaches
Strategy, one of the companies that holds the most Bitcoin in the world, continues to take a different approach regarding the proof of reserve application. At an event in May 2025, Michael Saylor, chairman of the company’s board of directors, stated that such practices could put corporate security and relevant stakeholders at risk and said, “I do not think this is a good idea, on the contrary, it would be a bad step.”
Michael Saylor suggested that sharing proof of reserves could create security vulnerabilities for the issuer as well as the custodian, exchange and investors; For this reason, he states that his own companies do not engage in such a practice.
This choice by Strategy stands out as a current example of the ongoing debate between security and transparency in the industry. Block, on the other hand, acts with a more open and auditable system approach.
New products and applications
Along with the reserve proof system, Block announced several new features for users. The company introduced the hardware wallet called Bitkey, where transactions can be verified with its touch screen. It has also been reported that a Cash App feature has been launched where certain users can automatically convert their payments into Bitcoin.
While 5 percent Bitcoin cashback opportunity is offered to users for purchases made through Square, customer withdrawal limits have been increased to 10 thousand dollars per day and 25 thousand dollars per week. Jack Dorsey has long advocated that Bitcoin can be used for everyday payments. According to Dorsey, widespread adoption of digital money as a means of payment is key to realizing the initial vision of Bitcoin.
Block, which has an important position in the digital money industry, continues to contribute to the progress of the crypto market in terms of transparency and ease of use with its innovative applications.
