Bitcoin (BTC) and crypto treasury companies pose related dangers as collateralized debt obligations (CDOs), securitized baskets of residence mortgages and different varieties of debt that triggered the 2007-2008 monetary disaster, Josip Rupena, CEO of lending platform Milo and former Goldman Sachs analyst, informed Cointelegraph.
Crypto treasury companies take bearer belongings with no counterparty threat and introduce a number of layers of threat, together with the competence of the company administration, cybersecurity, and the power of the enterprise to generate money circulate, Rupena stated. He added:
“There’s this facet the place individuals take what’s a fairly sound product, a mortgage again within the day or Bitcoin and different digital belongings right this moment, for instance, and so they begin to engineer them, taking them down a path the place the investor is not sure concerning the publicity they’re getting.”
Rupena informed Cointelegraph that whereas he doesn’t anticipate crypto treasury firms to be the reason for the following bear market, overleveraged companies might “exacerbate” a market downturn by way of compelled promoting, however it’s nonetheless too early to inform what the precise results shall be.
A number of market analysts have issued warnings concerning the potential of overextended crypto treasury firms to trigger a market-wide contagion through forced selling, miserable crypto costs in a rush to cowl money owed.
Associated: Peter Thiel vs. Michael Saylor: Crypto treasury bet or bubble?
Corporations diversify into altcoin holdings, leaving market traders divided
Conventional monetary firms are going past the Bitcoin treasury technique popularized by BTC advocate Michael Saylor and diversifying into altcoin treasuries.
Throughout July and August, a number of companies introduced Toncoin (TON), XRP (XRP), Dogecoin (DOGE), and Solana (SOL) company treasury methods, for instance.
Corporations adopting crypto treasury methods have seen blended results on their inventory costs, as markets react to the rising tide of firms pivoting to digital belongings.
Security Shot, a maker of well being and wellness drinks, introduced it could undertake the BONK (BONK) memecoin as its main reserve asset in August, sending shares of the corporate plummeting by 50% on the information.
Equally, the share costs of many Bitcoin treasury firms have slumped within the second half of 2025, as the sphere turns into more and more crowded.
Journal: South Koreans dump Tesla for Ethereum treasury BitMine: Asia Express
