Corporate Bitcoin Treasuries Pose Potential Credit Risks, Says Morningstar DBRS

Morningstar DBRS Flags Elevated Credit Risks from Corporate Bitcoin Treasuries

A surge in corporate adoption of bitcoin and other cryptocurrencies as treasury reserves may heighten credit risk due to regulatory uncertainty, liquidity constraints, and price volatility, warns a report from rating agency Morningstar DBRS.

As firms expand crypto use beyond payments, incorporating digital assets into their core treasury strategies, Morningstar DBRS cautions that such moves could increase financial vulnerabilities.

According to BitcoinTreasuries.net, about 3.68 million BTC—worth roughly $428 billion as of August 19—are held by a mix of corporations, ETFs, governments, DeFi protocols, and custodians, representing approximately 18% of the circulating bitcoin supply.

Funds dominate these holdings with 40%, while public companies hold 27%. The exposure is notably concentrated, with one entity, Strategy (MSTR), controlling over 629,000 BTC—64% of publicly held corporate bitcoin.

The report highlights several key risks associated with corporate crypto treasuries: regulatory uncertainty that may impact valuation and compliance; liquidity challenges during market downturns; and dependence on exchanges which introduce counterparty risk.

Bitcoin’s notorious price volatility complicates liquidity management and heightens overall risk. Moreover, differing token technologies and governance structures, as well as custody considerations, add layers of complexity and security concerns.

Morningstar DBRS anticipates continued growth in corporate crypto treasury allocations, especially by leaders such as Strategy and MARA Holdings. However, the firm warns that concentration risks, coupled with regulatory and market challenges, could materially influence how credit markets evaluate these companies’ creditworthiness.