Josip Rupena, CEO of the lending platform Milo and a former Goldman Sachs analyst, emphasized to Cointelegraph that Bitcoin (BTC) and crypto treasury firms carry risks akin to collateralized debt obligations (CDOs)—the securitized pools of home mortgages and other debts that led to the 2007-2008 financial crisis.
According to Rupena, crypto treasury companies take bearer assets that are free from counterparty risk and introduce multiple layers of risk, such as management competency, cybersecurity, and the company’s ability to generate cash flow. He remarked:
“There’s this aspect where individuals take a relatively sound product, such as a mortgage back in the day or Bitcoin and other digital assets today, for instance, and start to manipulate them, steering them in a direction where the investor is uncertain about their exposure.”
He also indicated that while he doesn’t foresee crypto treasury companies being the catalyst for the next bear market, overleveraged firms could “exacerbate” a downturn through forced selling, though it is still too soon to determine the precise impact.
Multiple market analysts have cautioned against the risks posed by overextended crypto treasury companies, which could trigger a market-wide contagion through forced selling, leading to a downturn in crypto prices as they rush to settle debts.
Related: Peter Thiel vs. Michael Saylor: Crypto treasury bet or bubble?
Companies diversify into altcoin holdings, leaving market investors divided
In a shift from the Bitcoin treasury approach championed by BTC advocate Michael Saylor, traditional financial companies are diversifying their holdings to include altcoin treasuries.
A number of firms have announced corporate treasury strategies involving Toncoin (TON), XRP (XRP), Dogecoin (DOGE), and Solana (SOL) during July and August.
Firms implementing crypto treasury strategies have experienced mixed reactions in their stock performances as the market responds to the increasing influx of companies pivoting to digital assets.
For instance, Safety Shot, known for producing health and wellness beverages, declared in August its intention to adopt the BONK (BONK) memecoin as its primary reserve asset, causing its stock to plunge by 50% following the announcement.
Similarly, many Bitcoin treasury firms have witnessed a drop in their share prices in the latter half of 2025 as competition in the sector intensifies.
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