A surge in corporate “bitcoin treasuries” has alarmed bankers. Heavy leverage and volatile reserves could create a systemic risk for the digital asset sector. Around 190 listed companies now hold over 1 million bitcoin, many financed through debt or equity, leaving them exposed if prices collapse.
A growing number of companies are using bitcoin and other digital assets as balance sheet reserves, prompting warnings from bankers about potential systemic risks tied to leverage and volatility.
Nickel Digital Asset Management, a London-based crypto-focused hedge fund. Nickel’s data show around 1.01 million bitcoin held by 190 publicly listed companies, with another 139 entities — including funds, exchanges, and DeFi protocols — also holding significant amounts. Most of these firms are in the US, though others operate in the UK, Canada, Japan, and Hong Kong.
The concern stems from corporate treasuries funding bitcoin purchases through equity or debt issuance, potentially creating a dangerous feedback loop if prices fall sharply. In that scenario, companies might be forced to liquidate holdings or face takeover risk, amplifying market stress.
Nickel’s CEO Anatoly Crachilov warned that the financial sustainability of these firms — not regulation — is the bigger risk. If shares trade below the value of their bitcoin holdings, it becomes unattractive to issue new stock, limiting growth and increasing the chance of forced sales or mergers.
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