Catenaa, Friday, June 20, 2025- Coinbase has raised alarm over a growing trend among publicly traded companies accumulating large Bitcoin reserves, warning that the strategy could trigger a catastrophic market sell-off if prices fall.
The cryptocurrency exchange issued the caution Thursday in its midyear market outlook, calling the trend a potential “systemic risk.”
The warning follows a surge in corporate adoption of Bitcoin, spurred by new accounting rules enacted in December that allow firms to record unrealized crypto gains.
Since then, more than 126 publicly traded companies have amassed a combined 819,857 BTC—valued at over $87 billion—mirroring moves by Strategy, Tesla and GameStop.
Coinbase Head of Research David Duong said the “attack of the clones” scenario could backfire. Many firms raised cheap capital through convertible bonds to buy Bitcoin.
If the price of BTC drops, those companies could be forced to sell en masse to repay debt, leading to broad liquidations.
Even President Donald Trump’s media company recently raised $2.4 billion to build a Bitcoin treasury, highlighting the trend’s political reach.
But analysts fear a sharp downturn could cause widespread destabilization before debt obligations are triggered, as firms rush to exit positions.
Standard Chartered also flagged the risk this week, estimating that half of these firms could go underwater if Bitcoin falls below $90,000. Coinbase maintains a bullish long-term view, but said the short-term dangers are real and mounting.
