Bankers warn Bitcoin treasuries boom risks creating leveraged crypto time bomb
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…
