In 2025, the landscape of cryptocurrency treasury management is increasingly scrutinized, particularly concerning the potential risks introduced by crypto treasury firms. These companies, which manage assets like Bitcoin (BTC), are believed to introduce several layers of risk to an asset class that typically features minimal counterparty risk. Josip Rupena, CEO of the lending platform Milo and a former analyst at Goldman Sachs, likened the risks associated with crypto treasury firms to those seen in collateralized debt obligations (CDOs) that contributed to the financial crisis of 2007-2008.
According to Rupena, while crypto treasury firms handle bearer assets devoid of counterparty risk, they bring into play various vulnerabilities, including the competence of corporate management, cybersecurity threats, and the firm’s capacity to generate cash flow. He articulated that these factors can significantly influence the stability of such companies and, by extension, the broader crypto market.
“While I do not expect crypto treasury companies to be the cause of the next bear market, overleveraged firms could exacerbate a market downturn through forced selling,” Rupena stated. He emphasized that the impact of these firms on the market remains uncertain.
Several market analysts have issued warnings about the potential for overextended crypto treasury firms to instigate a market-wide contagion through forced selling, which could lead to depressed cryptocurrency prices as firms rush to cover their debts. This concern is particularly relevant as the market continues to evolve, with traditional financial companies diversifying their treasury strategies beyond Bitcoin. In recent months, firms have begun announcing corporate treasury strategies involving altcoins like Toncoin (TON), XRP (XRP), Dogecoin (DOGE), and Solana (SOL).
Despite the growing trend of companies embracing crypto treasury strategies, the effects on stock prices have been mixed. For instance, Safety Shot, a company known for its health and wellness beverages, saw its shares plummet by 50% following the announcement that it would adopt the BONK (BONK) memecoin as its primary reserve asset in August 2025. Similarly, the share prices of various Bitcoin treasury firms have declined in the latter half of the year as competition within the sector intensifies.
As the crypto treasury landscape continues to shift, it remains critical for investors and stakeholders to stay informed about the associated risks and market dynamics. The evolving relationship between traditional finance and cryptocurrency assets highlights the need for cautious assessment and strategic planning in this rapidly changing environment.
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