Morningstar DBRS has issued a report indicating that the adoption of cryptocurrencies, particularly Bitcoin, as treasury reserves by corporations could increase their credit risk profiles. Key concerns highlighted include regulatory uncertainty, volatility, liquidity challenges, and potential custody issues. Currently, around 3.68 million BTC, valued at approximately $428 billion, are held by various entities, with corporate holdings being significantly dominated by a few firms, notably one called Strategy, which alone accounts for 64% of public company treasury holdings. The report warns that the reliance on Bitcoin could lead to difficulties in liquidity management due to its price volatility. Validated by Morningstar DBRS, the shift towards crypto treasuries is expected to evolve, but firms should prepare for complex regulations and intrinsic risks related to different tokens and their governance. These factors could lead to a substantial change in how corporate credit risks are assessed in financial markets.

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