In an incisive note that has the crypto community buzzing, a Standard Chartered analyst has raised alarms about the vulnerability inherent in the Bitcoin treasury strategies adopted by non-crypto companies. The analyst’s report suggests that if Bitcoin’s value dips below $90,000, about half of these treasury holdings might have to be liquidated—a scenario fraught with potential market implications.
The Perils of Bitcoin as a Corporate Treasury Asset
This revelation comes at a pivotal moment for Bitcoin, which has been navigating a landscape of volatility and regulatory scrutiny. The analyst cautions that companies leveraging Bitcoin as a treasury asset are subject to considerable risk, a perspective that might unsettle executives who embraced Bitcoin during its meteoric rise.
“Bitcoin’s allure as a hedge against inflation and its potential for high returns can’t be ignored,” the analyst noted. “But there’s a flipside—its extreme volatility. If the market turns, companies could face severe liquidity crises.”
This isn’t just speculative hand-wringing. The analyst points out that Bitcoin’s price swings have historically been dramatic. For instance, in the first half of 2021, Bitcoin’s value rocketed to nearly $65,000 before tumbling to under $30,000 within weeks. Fast forward to June 2025, and Bitcoin’s price hovers around $95,000, according to CoinMarketCap—perilously close to that troubling $90,000 threshold. This price movement is further explored in Bitcoin Surpasses $95K Amid Resilient U.S. Stocks, Analysts Voice Concerns Over Market Perception.
A Double-Edged Sword for Corporations
For companies outside the crypto realm, the decision to hold Bitcoin in their treasuries is often driven by a desire to align with forward-thinking financial strategies. However, the analyst warns that this approach could be a double-edged sword. Should Bitcoin’s price falter, these companies may find themselves in a bind, forced to sell off their Bitcoin holdings to meet financial obligations.
MicroStrategy, the business intelligence firm that famously went all-in on Bitcoin, serves as a high-profile case study. The company’s CEO, Michael Saylor, has been an outspoken advocate for Bitcoin as a treasury reserve. Yet, even for a company with such bullish convictions, a significant price drop could necessitate difficult decisions.
“MicroStrategy and others have set a precedent,” the analyst remarked, “but it’s a risky model. If Bitcoin’s price falls significantly, the financial strain on these companies could be substantial.”
Historical Context and Broader Impacts
The Bitcoin treasury trend gained momentum in 2020, amid pandemic-induced economic uncertainties. Companies like Tesla and Square joined the ranks of firms diversifying their reserves with digital assets, betting on Bitcoin’s long-term value proposition. But the current analysis suggests that this strategy might not be foolproof.
Beyond individual companies, there’s a broader market implication. A wave of forced liquidations could trigger a domino effect, exacerbating market downturns and shaking investor confidence. This potential for widespread sell-offs raises questions about the stability of Bitcoin as a corporate reserve asset. Insights into the growing institutional interest can be found in Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow.
Looking Ahead: Will Corporations Rethink Their Strategies?
As we move through 2025, the crypto landscape continues to evolve. Regulatory developments loom large, with potential implications for how companies manage their Bitcoin holdings. The Biden administration’s recent focus on cryptocurrency regulations could further influence corporate treasury strategies, adding another layer of complexity.
For now, the crypto community—and the market at large—will be watching Bitcoin’s price movements with bated breath. Will it hold above the critical $90,000 mark, or will it dip into territory that forces corporate hands? Only time will tell.
In the meantime, this analysis serves as a stark reminder of the inherent risks in embracing Bitcoin as a treasury asset. It raises pivotal questions about the future of digital currencies in corporate finance, leaving executives to ponder whether the potential rewards outweigh the lurking risks.
Source
This article is based on: Why a Bitcoin Treasury Strategy Is Risky: Analyst
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
