Bitcoin (BTC) and crypto treasury firms present risks akin to those seen with collateralized debt obligations (CDOs), which are securitized collections of home mortgages and other debt types that played a role in the 2007-2008 financial crisis, according to Josip Rupena, CEO of lending platform Milo and a former Goldman Sachs analyst, speaking to Cointelegraph.
Crypto treasury companies utilize bearer assets devoid of counterparty risk while introducing multiple layers of risk, such as corporate management effectiveness, cybersecurity, and the business’s capacity to generate cash flow, Rupena noted. He elaborated:
“There’s this aspect where people take what is a pretty sound product, a mortgage back in the day or Bitcoin and other digital assets today, for example, and they start to engineer them, taking them down a direction where the investor is unsure about the exposure they’re getting.”
Rupena expressed to Cointelegraph that although he does not foresee crypto treasury companies triggering the next bear market, overleveraged firms could “exacerbate” a market decline through forced selling; however, it remains too early to ascertain the precise impacts.
Numerous market analysts have cautioned about the possible risk of overextended crypto treasury companies inducing a market-wide contagion via forced selling, which could lower crypto prices as firms rush to settle debts.
Related: Peter Thiel vs. Michael Saylor: Crypto treasury bet or bubble?
Companies diversify into altcoin holdings, leaving market investors divided
Traditional financial institutions are expanding beyond the Bitcoin treasury approach popularized by BTC supporter Michael Saylor and are diversifying into altcoin treasuries.
In July and August, multiple firms unveiled corporate treasury strategies involving Toncoin (TON), XRP (XRP), Dogecoin (DOGE), and Solana (SOL), for example.
Firms implementing crypto treasury strategies have experienced varied effects on their stock prices as markets respond to the increasing influx of companies shifting towards digital assets.
Safety Shot, a producer of health and wellness beverages, declared in August that it would adopt the BONK (BONK) memecoin as its main reserve asset, resulting in a 50% drop in its share price.
Likewise, the stock prices of numerous Bitcoin treasury firms have declined in the latter half of 2025, as competition in the sector intensifies.
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