Debt-funded crypto holdings may trigger sell-offs, Coinbase warns
Coinbase flags systemic risk as 228 firms hold 820K BTC
Coinbase has warned that the strategies of publicly traded companies using borrowed funds to accumulate Bitcoin and other cryptocurrencies could pose systemic risks to the crypto market.
Although Coinbase analysts remain positive about the resilience of the crypto sector in 2025—citing economic stability and regulatory progress in the U.S.—they highlight growing risks associated with widespread Bitcoin treasury adoption by corporations.
Coinbase Research identified 228 publicly traded companies that collectively hold more than 820,000 BTC. A subset of 20 financial firms is employing high-risk debt-financed accumulation models, similar to those used by companies like Strategy.
These firms issue debt—often in the form of convertible bonds—used almost exclusively to purchase digital assets. According to Coinbase, most of them have little operational revenue outside their crypto holdings and trade at a premium to their net asset value.
The FASB accounting standard changes in December 2023, allowing companies to report crypto at fair market value, helped normalize Bitcoin-focused treasury strategies and what Coinbase calls Publicly Traded Crypto Vehicles (PTCVs).
Two key risks with PTCVs
Forced selling: If refinancing is unavailable, firms may be compelled to sell assets to service debt.
Discretionary selling: Even without financial stress, large-scale sell-offs to fund operations may negatively affect market sentiment and trigger broader liquidations.
Debt of corporations and maturity dates. Source: Coinbase monthly report
Coinbase warns that even small, unexpected sales from these large holders could damage investor confidence and lead to larger market events. The bulk of debt is due between 2029–2030, but early redemption clauses on some bonds start in 2026.
Companies like Strategy, Riot, and Semler Scientific hold billions in outstanding convertible bonds, which Coinbase flags as potential pressure points in unfavorable macro conditions.
As we wrote, Coinbase-WBTC legal battle ends without settlement
