CZ Sounds Alarm: Bitcoin Treasury Risks Lurk Behind Mainstream Adoption

Binance founder Changpeng Zhao drops a truth bomb—corporate Bitcoin treasuries aren’t the safe haven everyone thinks. As Fortune 500 FOMO drives institutional inflows, CZ warns of liquidity black holes and volatility traps hiding behind the hype.

Funny how ’hedge against inflation’ suddenly means ’pray the CFO doesn’t panic-sell during a 20% dip.’

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.