Crypto treasury firms introduce additional risks to an asset class that typically has low counterparty risk, according to Josip Rupena, CEO of lending platform Milo. Rupena compared these firms to collateralized debt obligations (CDOs) that contributed to the 2008 financial crisis, noting that they take what should be relatively stable assets, such as Bitcoin, and add layers of risk linked to corporate management, cybersecurity, and cash flow generation. He cautioned that overleveraged firms could worsen market downturns through forced selling, although he does not foresee them causing the next bear market. In recent months, traditional financial companies have expanded their asset strategies beyond Bitcoin to include other cryptocurrencies like Toncoin and XRP, resulting in varied stock price effects. Despite concerns of potential negative impacts from overextended crypto treasury companies, the trend toward diversifying corporate treasury strategies into digital assets is growing, particularly as the market becomes more crowded.

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