Morningstar DBRS Warns Corporate Bitcoin Treasuries May Increase Credit Risk

The growing adoption of cryptocurrencies by corporations as part of their treasury reserves introduces elevated credit risk due to regulatory uncertainty, liquidity concerns, and market volatility, according to a new report from Morningstar DBRS.

As companies move beyond using crypto solely for payments, many are holding significant amounts of bitcoin (BTC) and other digital assets as core components of their treasury portfolios. Morningstar DBRS cautions that this trend could increase the credit risk profile of firms employing such strategies.

Data from BitcoinTreasuries.net shows that approximately 3.68 million BTC — valued at around $428 billion as of August 19 — are held across a mix of entities including corporations, exchange-traded funds (ETFs), governments, decentralized finance (DeFi) platforms, and custodians. This represents roughly 18% of bitcoin’s circulating supply.

Funds lead the holdings with 40%, followed by public companies holding 27%. However, exposure remains highly concentrated; for example, Strategy (MSTR) alone holds over 629,000 BTC, making up 64% of all bitcoin held by public companies, the report highlights.

Morningstar DBRS points to several risks tied to corporate crypto treasury allocations: ongoing regulatory ambiguity, liquidity pressures during market swings, and counterparty risks linked to exchanges. The volatility inherent in bitcoin’s price movements poses challenges for liquidity management and can amplify financial risk.

The report also emphasizes that different cryptocurrencies carry unique technological and governance challenges. Custody remains a key concern, whether managed internally or via third-party providers, as security vulnerabilities persist.

While corporate adoption of crypto treasuries is expected to expand—led by firms like Strategy and MARA Holdings—the report warns that the concentration of holdings, combined with market volatility and complex regulatory landscapes, may significantly alter credit risk assessments for these companies.