Bitcoin treasury strategies are becoming a growing trend among corporations, but they may come with significant credit risk challenges, according to a new report by Morningstar DBRS.

As businesses increasingly turn to bitcoin (BTC) and other digital assets not just for transactions but as long-term treasury holdings, credit analysts are raising red flags. Data from BitcoinTreasuries.net reveals that about 3.68 million BTC—representing around 18% of bitcoin’s total circulating supply—are currently held by corporate entities, governments, exchange-traded funds (ETFs), decentralized finance (DeFi) protocols, and custodial services. At current market value, this equates to approximately $428 billion as of August 19.

Breakdown of Corporate Bitcoin Holdings

The report shows that funds account for the largest segment, holding about 40% of this digital asset pool. Public companies follow with 27% ownership. However, this exposure is unevenly distributed. Strategy (MSTR), a major player in the space, holds over 629,000 BTC—an immense concentration that represents 64% of all public-company holdings.

This kind of holdings concentration raises particular concerns for credit analysts. As Morningstar DBRS points out, such significant exposure to a volatile asset class increases the potential for liquidity constraints and raises the risk profile of the companies involved.

Risks and Challenges in Crypto Treasury Management

The Morningstar DBRS report outlines several vulnerabilities corporations face when managing digital asset treasuries. Chief among them are:

• Regulatory Uncertainty: Cryptocurrency regulation varies greatly by jurisdiction and is continuously evolving, making long-term strategic planning difficult.
• Liquidity During Volatility: Bitcoin’s infamous price fluctuations can pose serious challenges when converting assets into operational capital during financial stress periods.
• Exchange Counterparty Risk: The reliance on centralized exchanges exposes companies to third-party risk, which can be a point of failure in the custody chain.

Custody remains another fundamental concern. Whether companies manage their private keys in-house or through third-party custodians, ensuring the digital assets are secure from hacks or mismanagement is a crucial factor in risk management.

Visual representation of increasing corporate bitcoin holdings amid market volatility.

Future Outlook and Implications for Credit Ratings

The trend toward corporate adoption of crypto treasuries is gaining momentum, with companies such as Strategy and MARA Holdings (MARA) leading the charge. Morningstar DBRS cautions that this rising interest must be balanced against a complex set of financial and operational risks.

As companies adopt crypto-heavy reserve strategies, traditional credit risk assessment models may need to evolve. Volatility, token-specific governance structures, concentration of holdings, and fragmented regulations could all influence how the creditworthiness of such firms is perceived in the broader market.

Related: Cardano Bull Setup Points to December Rally

To learn more about the growing financial upside and risks in corporate crypto strategies, read: Bitcoin Treasury Firm Semler Scientific Still Has 3X Upside: Benchmark