The Problem: Unproven Bitcoin Is Just Another IOU
Bitcoin is designed to be verifiable—but most corporate disclosures aren’t. When companies report BTC holdings without public wallet visibility or on-chain proof, investors are left to trust balance sheets, auditors, and custodians.
That opens the door to systemic risks:
Rehypothecation: BTC pledged or lent behind the scenes
Custodial failure: Centralized services operating without 1:1 backing
“Paper Bitcoin”: Multiple claims on the same BTC, echoing legacy financial opacity
The mere presence of Bitcoin on a balance sheet is not a guarantee. Without verification, it’s no different than a fiat-denominated claim—an IOU dressed up in BTC terms.