Corporate Crypto Treasuries Face Real but Nuanced Risks in 2025, Analysts Warn

A new trend is emerging in the cryptocurrency industry as public companies increasingly adopt crypto treasury strategies, raising billions of dollars to accumulate digital assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP.

This phenomenon has sparked debates about whether it represents a bubble or a transformative innovation in corporate finance. A report by Presto Research explores this trend, analyzing its risks, strategies, and broader implications for the crypto market.

The Emergence of Crypto Treasury Companies

According to the report, 228 companies have adopted some form of crypto treasury strategy for Bitcoin alone. These firms include major names such as Tether-backed Twenty One, Trump Media, GameStop, and others, following the model pioneered by Strategy and its co-founder Michael Saylor.

The strategy leverages public capital markets to accumulate crypto assets, aiming to maximize shareholder value. Notably, this trend is particularly prominent in the U.S., where deep capital markets and sophisticated institutional investors provide a conducive environment.

Financial Strategies: Pick Your Instrument Wisely

The report highlights various financial instruments used by these companies to fund their crypto acquisitions. These include private investment in public equity (PIPE), at-the-market offerings, convertible bonds, and perpetual preferred shares. Each instrument is tailored to the company's maturity stage and investor base, allowing them to leverage market volatility effectively.

Risks: Real but Manageable

Presto Research identifies two primary risks associated with crypto treasury companies: collateral liquidation risk and activist-driven liquidation risk. However, these risks are more contained compared to past crypto crises like the Terra ecosystem collapse or the Three Arrows Capital (3AC) debacle.

The report notes that of the $44 billion raised or pending among 12 key firms, only a third is debt-financed, with 87% of that debt being unsecured. This disciplined approach minimizes the likelihood of systemic liquidation risks from margin calls.

Additionally, activist investors are unlikely to pursue liquidation as a first resort, often opting for less disruptive measures like share buybacks or tender offers.

The State of U.S. Crypto Treasury Companies

The report also sheds light on the current state of U.S.-based crypto treasury companies. These firms are leading the charge in adopting innovative financial strategies to grow their crypto holdings.

However, the report warns that newer entrants in the U.S. market face significant challenges. Many of these companies lack the operational expertise to manage the inherent volatility of the crypto market. This is particularly concerning given that only 13% of the debt raised by these firms is secured, leaving them more vulnerable to liquidity crises during market downturns.

Additionally, as highlighted in Figure, the concentration of crypto treasury companies in the U.S. market means that any regulatory changes or macroeconomic shocks could disproportionately affect the ecosystem.

Broader Implications for the Crypto Market

The rise of crypto treasury companies has broader implications for the cryptocurrency market. Analysts at Sygnum argue that the increasing holdings of these companies could make Bitcoin less suitable as a central bank reserve asset. Meanwhile, Coinbase Institutional's David Duong warns that leveraged corporate crypto buying may pose systemic risks in the future.

However, proponents like Michael Saylor remain optimistic. Saylor claims that Strategy’s capital structure is designed to withstand a 90% drop in Bitcoin prices over four to five years, although shareholders would still face significant losses.

In conclusion, while U.S.-based crypto treasury companies are at the forefront of integrating digital assets into corporate finance, their success will depend on their ability to navigate regulatory challenges, manage liquidity effectively, and maintain financial discipline. The report suggests that these firms' innovative approaches could serve as a blueprint for others, but only if they can withstand the pressures of a volatile market.