Key Takeaways

• A report from Sentora highlights the dangers of companies adopting Bitcoin as a treasury asset, comparing it to a game of balance sheet roulette.
• This approach entails borrowing funds to invest in Bitcoin, a zero-yield asset, which introduces significant risk and reliance on price increases.
• Companies may enter a downward cycle if Bitcoin’s value declines due to a lack of a lender of last resort.

Corporate treasury adoption is analogous to roulette.

Findings

Sentora’s study assesses strategies of 213 entities holding a total of 1.79 million BTC, valued at $214 billion as of August 2025. Notably, publicly traded companies possess about 71.4% of these holdings, approximately 1.27 million BTC on their balance sheets.

The report suggests a time-proven approach of borrowing money to acquire a limited asset, noting Bitcoin’s scarcity. However, it warns that this borrowing strategy leads to negative carry trades since Bitcoin does not generate cash flow, creating a structural fragility in the companies’ financial health.

When the Bitcoin price stagnates or falls, the collateral backing their debt diminishes, adversely affecting their stock prices and complicating capital raises. Additionally, firms may resort to liquidating their Bitcoin holdings to fulfill obligations, further exacerbating market declines.

The intrinsic challenge remains: Bitcoin, until recognized as a productive digital asset with a reliable yield, continues to pose speculative risks for its holders.