The rise of crypto-loaded corporate treasuries may be a sign of maturing institutional interest — but according to Franklin Templeton Digital Assets, it could also lay the groundwork for a severe market shock if conditions sour.
More than 130 publicly traded companies now hold Bitcoin alone, with others adding Ethereum and Solana. The playbook, popularized by Strategy (formerly MicroStrategy), involves raising capital through various instruments — from equity and convertibles to preferred shares — and using those funds to buy crypto directly.
The strategy works well in bull markets. Firms often issue stock above their net asset value (NAV), unlocking more capital and pushing market caps higher — especially when crypto prices climb. This can create a virtuous cycle: rising tokens boost valuations, attract investors, and enable more fundraising. Proof-of-Stake holdings further sweeten the model through staking rewards.
But Franklin Templeton warns that this loop can quickly reverse. A drop in token prices or a break in investor confidence could flip the NAV premium to a discount, cutting off access to accretive capital and forcing companies to liquidate holdings. Such sell-offs could crash token prices further, creating a feedback spiral with no easy exit.
While the approach reflects growing crypto acceptance among institutions, analysts caution that it remains a high-risk model. Companies betting heavily on crypto must maintain momentum, or risk triggering the very downturn they hope to profit from.
Some, like Metaplanet and Upexi, have followed Strategy’s lead, concentrating their treasuries in BTC or SOL. Others have diversified exposure across ETH or relied on staking yield for added stability.
Still, voices across the sector — including Coinbase Institutional’s David Duong — have flagged long-term risks from excessive leverage in corporate crypto treasuries. While there’s no immediate threat of collapse, the next bear cycle could put the entire model to the test.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is passionate about questions of meaning. He is a fluent German speaker as well as He has been in the crypto space for more than three years and has an eye for spotting emerging trends in the world of digital currencies. Whether providing in-depth analysis or reporting on all topics on a daily basis, his deep understanding and enthusiasm for what he does makes him a valuable addition to the team.
Source: https://coindoo.com/crypto-fueled-corporate-treasuries-raise-growth-potential-and-collapse-risks/