Are Crypto Treasuries the Next Big Bubble? Analysts Warn of Hidden Risks
The corporate Bitcoin gold rush may be building a bubble. While companies like MicroStrategy have made headlines for turning BTC into a treasury asset, Milo CEO and former Goldman Sachs analyst Josip Rupena is sounding the alarm: crypto treasuries could become accelerants in the next bear market.
Could Treasuries Deepen the Next Bear Market?
It’s not about if the market corrects—but how.
- 178 publicly traded companies now hold crypto on their balance sheets
- Many are highly leveraged, using debt to buy BTC
- If Bitcoin drops sharply, margin calls could force fire sales
Rupena warns this could create a negative feedback loop:
- BTC price falls
- Leveraged firms sell BTC to cover debt
- Increased sell pressure drives price lower
- More firms face liquidation
This contagion risk mirrors 2008’s financial crisis—not in cause, but in mechanism.
“Treasuries may act as accelerants, not stabilizers.”
Expanding Beyond Bitcoin: The Altcoin Gamble
The playbook has evolved—and gotten riskier.
- MicroStrategy’s BTC strategy was built on scarcity and digital gold
- Now, companies are holding Solana, XRP, Dogecoin, Toncoin, and meme tokens like BONK
- Safety Shot, a beverage company, crashed 50% after announcing BONK as its primary reserve
Even established BTC treasury firms have seen share slumps—proving investor skepticism is growing.
🔻 Why Altcoin Treasuries Are Riskier:
- No scarcity narrative (e.g., DOGE’s 5% annual inflation)
- Low utility in corporate finance
- High volatility — BONK up 10x one month, down 70% the next
- Regulatory uncertainty — XRP, SOL, and DOGE all face potential SEC scrutiny
As Grayscale files for altcoin ETFs, the institutionalization of altcoin treasuries could inflate valuations without real utility.
Is a “Treasury Bubble” Forming?
Signs are flashing.
| Indicator | Status |
|---|---|
| Number of Crypto Treasury Firms | 178+ and rising |
| Average P/E Ratios | Skyrocketing on crypto news, not earnings |
| Media Hype | Peaking — “Bitcoin as treasury” is now mainstream |
| Investor Sentiment | Torn between FOMO and fear of collapse |
Rupena doesn’t believe treasuries will cause the next crash—but they could deepen it.
And unlike Bitcoin, which is decentralized and counterparty-free, corporate treasuries introduce centralized risk:
- Poor management decisions
- Cybersecurity breaches
- Debt defaults
- Regulatory crackdowns
“You’re not investing in Bitcoin. You’re investing in a company that holds Bitcoin.”
Final Takeaway: Excitement vs. Caution
- ✅ Crypto treasuries are mainstreaming digital assets
- ✅ BTC adoption signals long-term confidence
- ❌ Leverage, altcoin speculation, and hype are inflating valuations
- ⚠️ Forced liquidations could trigger cascading sell-offs
The strategy works in bull markets.
But in a downturn?
The same leverage that multiplies gains could amplify losses.
As Rupena concludes:
“History may be repeating itself—with complex structures hiding risks until it’s too late.”
And this time, the asset on the balance sheet isn’t a mortgage-backed security.
It’s Bitcoin—and a bag of meme coins.
