Cryptoโ Treasury Companies See Rapid Shift inโ Strategy as Bitcoin โฃprices Fluctuate
NEW YORK -โฃ Sept.23, 2025 – The wave of companies establishing “crypto treasuries” – holdingโค bitcoin and othre digital assets on their balance sheets – may be nearing a turning point, with โsome firms already reversing course and prioritizing shareholder โreturns over further crypto investment. The shift comes as bitcoin pricesโข experienceโ volatility, raising concerns about the riskโข exposure for companies heavily invested inโ the asset โclass.
Just โคsix โmonths after gaining prominence, the initial enthusiasmโข surrounding corporate bitcoin holdings is waning, accordingโ toโฃ Elliot โฃChun, partner at crypto advisory firm Architect Partners. “It’s only been six months and we’re already talking about their โdemise,” 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 โฃmeans of diversifying value โฃstorage, mitigating inflation risk, and reallocating capital – a concept PYMNTS explored earlierโ 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 digitalโ tokens, a move Chun describedโ as “antithetical” to the original crypto treasury concept.
PYMNTS previously reported that as bitcoin matures, a more measured approach to corporateโฃ crypto investment is highly likely, with CFOs โฃpotentially adopting a “hybrid treasury model” maintaining โคa mix of cash, fixed-income assets, and bitcoin. However,recent analysis highlights the โinherentโ risks of significant โbitcoin holdings.
A study by British economists analyzing 39 publicโฃ companies with bitcoin holdings found that some firms exhibited a betaโ exceeding 1, meaning โtheir โฃstock returns were more volatile than bitcoin itself.This data, as reported by PYMNTS โearlier this month, underscores that “crypto-rich treasuries expose shareholder value to crypto’s wild swings,” and that โfirms with larger โcrypto positions are more susceptible to market volatility.