Bitcoin (BTC) and crypto treasury corporations pose related dangers as collateralized debt obligations (CDOs), securitized baskets of house mortgages and different sorts of debt that triggered the 2007-2008 monetary disaster, Josip Rupena, CEO of lending platform Milo and former Goldman Sachs analyst, instructed Cointelegraph.
Crypto treasury corporations take bearer belongings with no counterparty danger and introduce a number of layers of danger, together with the competence of the company administration, cybersecurity, and the power of the enterprise to generate money movement, Rupena stated. He added:
“There’s this facet the place folks take what’s a reasonably sound product, a mortgage again within the day or Bitcoin and different digital belongings at present, for instance, they usually begin to engineer them, taking them down a route the place the investor is not sure in regards to the publicity they’re getting.”
Rupena instructed Cointelegraph that whereas he doesn’t anticipate crypto treasury corporations to be the reason for the following bear market, overleveraged corporations might “exacerbate” a market downturn via pressured promoting, however it’s nonetheless too early to inform what the precise results might be.
Several market analysts have issued warnings in regards to the potential of overextended crypto treasury corporations to trigger a market-wide contagion via pressured promoting, miserable crypto costs in a rush to cowl money owed.
Related: Peter Thiel vs. Michael Saylor: Crypto treasury wager or bubble?
Companies diversify into altcoin holdings, leaving market buyers divided
Traditional monetary corporations are going past the Bitcoin treasury technique popularized by BTC advocate Michael Saylor and diversifying into altcoin treasuries.
During July and August, a number of corporations introduced Toncoin (TON), XRP (XRP), Dogecoin (DOGE), and Solana (SOL) company treasury methods, for instance.
Companies adopting crypto treasury methods have seen combined results on their inventory costs, as markets react to the rising tide of corporations pivoting to digital belongings.
Safety Shot, a maker of well being and wellness drinks, introduced it will undertake the BONK (BONK) memecoin as its main reserve asset in August, sending shares of the corporate plummeting by 50% on the information.
Similarly, the share costs of many Bitcoin treasury corporations have slumped within the second half of 2025, as the sphere turns into more and more crowded.
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