MEXC Exchange Boosts Bitcoin Reserve Coverage
Cryptocurrency exchange MEXC's February proof-of-reserve report shows its Bitcoin coverage ratio jumped to 267%, up from 158% previously. The company's wallet holdings nearly doubled to over 12,000 BTC. The exchange stated that all of its major assets remain above a 1:1 backing standard.
- The practice of issuing Proof-of-Reserve (PoR) reports gained prominence following the 2022 collapse of FTX, which was found to be operating a fractional reserve and could not meet customer withdrawal demands. PoR audits serve to verify that an exchange holds assets equivalent to or greater than its customer liabilities. - In addition to Bitcoin, MEXC's February report detailed a 112% reserve ratio for Ethereum (ETH), 117% for Tether (USDT), and 124% for USD Coin (USDC). - The exchange's Bitcoin reserve ratio has shown a significant upward trend over time, increasing from 116.5% in its first report in February 2023, to 141% in December 2025, and 158% in January 2026. - MEXC employs the independent blockchain security and audit firm Hacken to publish its monthly PoR reports, which use a Merkle Tree structure to allow users to verify their balances privately. - While the industry standard is to maintain a reserve ratio above 100%, many financially stable exchanges typically hold a buffer between 101% and 105% to account for price volatility, making the reported 267% ratio unusually high. - It is a general limitation of this audit method that Proof-of-Reserve reports are a snapshot at a specific point in time and may not reflect all of a company's liabilities or provide a continuous view of its financial position.
