Coinbase has issued a warning about the risks of the Bitcoin reserve model
Analysts at Coinbase have warned that the increasing reliance of listed companies on Bitcoin reserves could pose a “systemic risk” to the entire cryptocurrency market. The following is the specific situation:
Market situation: After large listed companies like Tesla spent billions of dollars on Bitcoin, in recent months, more than 100 other Wall Street listed companies have followed suit one after another. According to bitcointreasuries.net, 126 publicly traded companies hold a total of 819,857 Bitcoins worth more than $87 billion.
Risk analysis: David Duong, the head of research at Coinbase, pointed out in the cryptocurrency market outlook report for the second half of 2025 that this trend could be a bull market in the short term, but in the medium and long term, concerns over the decline in Bitcoin prices could trigger a disaster. These companies that raise funds by issuing convertible bonds to purchase cryptocurrencies will have to start repaying investors when the price of Bitcoin begins to fall and are likely to be forced to “sell their cryptocurrency holdings, which may result in losses”. This situation where numerous entities sell off simultaneously could lead to market liquidation and a broader sell-off of cryptocurrencies, even destabilizing the market before actual debt repayment issues arise.
Similar view: Recently, analysts have also begun to sound similar alarm bells. Last week, Standard Chartered Bank predicted that if the price of Bitcoin fell below $90,000, about half of the non-crypto listed companies holding Bitcoin reserves would face losses.
Although Coinbase expressed confidence in the upward trajectory of Bitcoin, it still classified this potential risk as “systemic”.
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