Bitcoin (BTC) and crypto treasury firms are drawing parallels to financial instruments like collateralized debt obligations (CDOs) and securitized mortgage baskets that were central to the 2007-2008 financial crisis, according to Josip Rupena, CEO of lending platform Milo and a former analyst at Goldman Sachs. In a conversation with Cointelegraph, Rupena highlighted the risks these firms introduce by layering multiple risk factors on top of bearer assets, such as Bitcoin, which inherently carry no counterparty risk.
Rupena explained, “There’s this aspect where people take what is a pretty sound product, a mortgage back in the day or Bitcoin and other digital assets today, for example, and they start to engineer them, taking them down a direction where the investor is unsure about the exposure they’re getting.” This engineering of financial products can obscure the actual risks involved, potentially leading to unforeseen market implications.
While Rupena does not predict that crypto treasury companies will directly trigger the next bear market, he cautions that overleveraged firms could exacerbate a market downturn through forced selling. The full impact of such actions remains speculative at this stage.
There are 178 public companies with BTC on their balance sheets. Source: BitcoinTreasuries
Several market analysts have issued warnings about the potential for overextended crypto treasury companies to trigger a market-wide contagion through forced asset liquidation, which could depress crypto prices as firms rush to cover their debts.
Companies Diversify into Altcoin Holdings, Leaving Market Investors Divided
In recent developments, traditional financial companies are expanding their crypto treasury strategies beyond Bitcoin, a move initially popularized by BTC advocate Michael Saylor, by diversifying into altcoin treasuries. This shift has sparked a varied response from market investors.
During July and August, several firms announced corporate treasury strategies involving altcoins like Toncoin (TON), XRP (XRP), Dogecoin (DOGE), and Solana (SOL). These strategies reflect a growing appetite for diversification in the crypto space, though the market’s reaction has been mixed.
For instance, Safety Shot, a company known for its health and wellness beverages, announced in August that it would adopt the BONK (BONK) memecoin as its primary reserve asset. This decision led to a dramatic 50% drop in the company’s share price, highlighting the volatility and risks associated with such strategies.
Similarly, the share prices of many Bitcoin treasury firms have seen declines in the second half of 2025 as the market becomes increasingly saturated with companies adopting similar digital asset strategies.
As the landscape of crypto treasuries evolves, companies and investors alike must weigh the benefits and risks of diversifying their holdings into digital assets. The long-term effects of this trend will depend on market dynamics and regulatory developments.
For more information, visit the source article on Cointelegraph: https://cointelegraph.com/news/crypto-treasury-firms-cdo-risk-2008-financial-crisis?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound
