Bitcoin News Today: Corporate Bitcoin Holdings Rise, Credit Risks Concern Analysts

The growing adoption of bitcoin and other cryptocurrencies as corporate treasury assets has raised concerns among credit analysts, who warn that the practice could increase credit risk for companies. According to Morningstar DBRS, the integration of cryptocurrencies into corporate balance sheets has created a new category of firms—“cryptocurrency treasury companies”—that face heightened exposure to market volatility and regulatory uncertainty [1].

Over the past decade, cryptocurrencies have become more mainstream, with companies of various sizes using them for payments and investments. Morningstar DBRS analysts observe that corporations are increasingly treating bitcoin as a reserve asset, positioning it alongside traditional treasuries [1]. However, they caution that this strategy introduces unique financial risks that differ significantly from conventional asset management [1].

The concentration of corporate bitcoin holdings is a key issue. One firm, Strategy Inc., holds over 629,000 bitcoins—approximately 64 percent of all public company bitcoin treasury holdings. The top 20 public companies collectively control an estimated 94 percent of corporate bitcoin reserves, indicating a high degree of concentration [1]. As of August 2025, approximately 3.68 million bitcoins, valued at around $428 billion, are held across corporations, ETFs, governments, and custodians, representing nearly 18 percent of the current circulating supply [1].

Despite the confidence shown by these companies, analysts highlight that relying on a volatile asset like bitcoin for treasury management poses significant challenges. For example, bitcoin has been nearly five times more volatile than the S&P 500 in the short run and four times more volatile in the long run, according to a June 2024 study cited by Morningstar [1]. This volatility can undermine liquidity planning and negatively impact balance sheets during periods of market stress.

Beyond market exposure, regulatory uncertainty remains a pressing challenge. While some jurisdictions, such as the U.S. and the eurozone, have introduced clearer rules, the lack of a uniform global framework means corporations face shifting compliance obligations [1]. Liquidity is another concern. Although digital asset markets have expanded, they can become thin during times of volatility, leading to delays and wider spreads, which undermine the reliability of cryptocurrency as a financial backstop [1].

Security and counterparty risks also play a role, as many firms rely on centralized exchanges for trading and custody. Recent legal disputes, such as the SEC’s lawsuit against Coinbase—eventually dropped in 2025—underscore the unpredictable nature of the regulatory environment [1]. Custodial strategies add further complexity, with firms needing to evaluate the trade-offs between self-custody and third-party solutions.

The central role of corporate treasury management is to ensure stability, support operations, and enable growth. Analysts argue that integrating highly volatile assets like bitcoin fundamentally alters this function. The combination of price swings, regulatory shifts, and custodial uncertainties can directly impact a company’s creditworthiness [1].

While corporate adoption of cryptocurrencies is likely to continue—particularly as regulatory clarity improves and integration into payment systems expands—Morningstar DBRS analysts emphasize that these strategies carry meaningful implications for credit risk. The long-term viability of corporate crypto treasuries will depend on the ability of companies to balance the potential benefits of digital assets with the fundamental responsibility of safeguarding financial stability [1].

Source: [1] Corporate Crypto Treasuries: Bitcoin Reserves Could Heighten Credit Risk, Analysts Warn (https://cryptonews.com/news/corporate-crypto-treasuries-bitcoin-reserves-could-heighten-credit-risk-analysts-warn/)