Former Binance CEO Warns Companies of Bitcoin Reserve Risks

Former head of the largest crypto exchange Binance, Changpeng Zhao (CZ), spoke about the risks associated with the active introduction of Bitcoin into corporate treasuries.

He commented on a tweet by user X nicknamed BRIT, who published a list of companies that have started to form their reserves in the first cryptocurrency. In response, CZ shared his views on risk management and explained why the approach to such investments should be balanced.

According to him, every company, regardless of its line of business, inevitably faces risks — this is a natural part of doing business. However, he emphasized that risks cannot be perceived as something binary, like "all or nothing": their range is between 0 and 100, and it is possible to manage them. The main thing is to find the right balance, in which the ratio of risk and expected profitability will be most beneficial for a particular business. At the same time, Zhao noted that refusing any risks also carries a danger — such a strategy can freeze development and lead to lost profits. He also added that risk management is not only possible, but necessary — it is an important component of long-term success.

CZ noted that it is important to think about unlikely but possible scenarios: whether a company can withstand a complete collapse of the Bitcoin exchange rate to zero or, on the contrary, lose the value of its funds due to a sharp depreciation of fiat currency, for example, in the context of political instability or revolution. In his opinion, such situations seem unlikely, but in real history they happen much more often than is commonly believed.

Earlier, CoinDesk experts noticed changes in the behavior of large Bitcoin holders, the so-called whales. According to the study, owners of wallets with balances over 10 thousand bitcoins have moved from the accumulation phase to the distribution of their assets.