Crypto Treasury Companies See Rapid Shift in Strategy as Bitcoin prices Fluctuate
NEW YORK - Sept.23, 2025 – The wave of companies establishing “crypto treasuries” – holding bitcoin and othre digital assets on their balance sheets – may be nearing a turning point, with some firms already reversing course and prioritizing shareholder returns over further crypto investment. The shift comes as bitcoin prices experience volatility, raising concerns about the risk exposure for companies heavily invested in the asset class.
Just six months after gaining prominence, the initial enthusiasm surrounding corporate bitcoin holdings is waning, according to Elliot Chun, partner at crypto advisory firm Architect Partners. “It’s only been six months and we’re already talking about their demise,” Chun told the Financial Times. “A very small percentage are going to succeed.”
the trend marks a potential departure from the initial vision of bitcoin’s increasing role in corporate treasuries as a means of diversifying value storage, mitigating inflation risk, and reallocating capital – a concept PYMNTS explored earlier this year. While the idea suggested a fundamental rethinking of corporate finance, some companies are now opting to use funds for share buybacks instead of acquiring more digital tokens, a move Chun described as “antithetical” to the original crypto treasury concept.
PYMNTS previously reported that as bitcoin matures, a more measured approach to corporate crypto investment is highly likely, with CFOs potentially adopting a “hybrid treasury model” maintaining a mix of cash, fixed-income assets, and bitcoin. However,recent analysis highlights the inherent risks of significant bitcoin holdings.
A study by British economists analyzing 39 public companies with bitcoin holdings found that some firms exhibited a beta exceeding 1, meaning their stock returns were more volatile than bitcoin itself.This data, as reported by PYMNTS earlier this month, underscores that “crypto-rich treasuries expose shareholder value to crypto’s wild swings,” and that firms with larger crypto positions are more susceptible to market volatility.