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, informed Cointelegraph.
Crypto treasury firms take bearer property with no counterparty threat and introduce a number of layers of threat, together with the competence of the company administration, cybersecurity, and the flexibility of the enterprise to generate money movement, Rupena mentioned. He added:
“There’s this side the place folks take what’s a fairly sound product, a mortgage again within the day or Bitcoin and different digital property at this time, for instance, they usually begin to engineer them, taking them down a path the place the investor is not sure in regards to the publicity they’re getting.”
Rupena informed Cointelegraph that whereas he doesn’t anticipate crypto treasury firms to be the reason for the subsequent bear market, overleveraged corporations may “exacerbate” a market downturn via compelled promoting, however it’s nonetheless too early to inform what the precise results can be.
A number of market analysts have issued warnings in regards to the potential of overextended crypto treasury firms to trigger a market-wide contagion via compelled promoting, miserable crypto costs in a rush to cowl money owed.
Associated: Peter Thiel vs. Michael Saylor: Crypto treasury guess 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 corporations introduced Toncoin (TON), XRP (XRP), Dogecoin (DOGE), and Solana (SOL) company treasury methods, for instance.
Corporations adopting crypto treasury methods have seen combined results on their inventory costs, as markets react to the rising tide of firms pivoting to digital property.
Security 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.
Equally, the share costs of many Bitcoin treasury corporations have slumped within the second half of 2025, as the sector turns into more and more crowded.
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