Binance founder CZ warns of Bitcoin treasury risks amid growing adoption

Changpeng Zhao, founder and former CEO of Binance, has urged companies adopting Bitcoin as a treasury asset to fully understand the risks involved with the top crypto.

In a June 3 post on X, Zhao acknowledged that risk is an unavoidable part of doing business, but emphasized the importance of assessing and managing it properly.

According to him:

“Every company takes risks. Risks are not binary like 0 or 1. Risks are a range from 0 – 100.”

He added that failing to take risks may be just as dangerous as taking too much, suggesting that avoidance can lead to missed opportunities or unpreparedness for future shocks.

Meanwhile, Zhao emphasized that risk isn’t inherently negative if approached wisely, saying:

“With the right balance, you can achieve the best risk/ROI ratio that works for you.”

When asked how companies can prepare for worst-case scenarios, Zhao pointed to potential financial collapses, such as a currency losing all value or Bitcoin going to zero, as events businesses must be prepared to endure.

He noted:

“Extreme cases are not that extreme [in real life]. They happen.”

Zhao’s comments follow a wave of companies adopting Bitcoin as a treasury asset.

According to Bitcoin Treasuries data, over 200 firms now hold Bitcoin, with notable additions like Trump Media and GameStop recently joining the ranks.

According to data compiled by Hodl15Capital, the top 100 holders collectively control more than 814,000 BTC. Strategy (formerly MicroStrategy) remains the largest institutional holder, with over 580,000 BTC under management.

Why Bitcoin treasuries are gaining popularity

Market observers have explained that this shift is driven by Donald Trump’s pro-Bitcoin administration and the belief that the top crypto offers protection against counterparty risk and currency instability.

Crypto firm River explained that holding Bitcoin allows firms to minimize reliance on third parties, especially if they opt for self-custody or work with custodians that don’t lend out assets or only issue overcollateralized loans.

The firm also pointed out that Bitcoin is a valuable tool for multinational companies operating in various currencies. According to River, a Bitcoin treasury can act as a bridge asset, reducing the friction and costs of cross-border transactions.

At the same time, River stated that BTC can act as a defensive asset during low-interest or inflationary periods. The firm noted that Bitcoin’s capped supply and predictable issuance give it a unique advantage in preserving long-term value, unlike fiat currencies, which are vulnerable to debasement.

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