Listed companies are going "all in" with Bitcoin – Opportunity or hidden danger?

In 2025, the wave of listed companies buying Bitcoin (BTC) is becoming increasingly strong. Through the issuance of stocks and bonds, a number of enterprises have actively integrated BTC into their balance sheets. As the price of Bitcoin rises, not only does their asset value increase accordingly, but their stock prices also soar due to market confidence.

But the big question is: Will these companies have enough strength to withstand when the market enters a downturn?

The participation of organizations – A double-edged sword with Bitcoin

Since Michael Saylor – co-founder of Strategy – initiated the movement to buy Bitcoin, many large companies have followed suit. Dean Chen (Bitunix) stated that institutional capital has turned Bitcoin into "digital gold" in the eyes of investors:

"In just the first 7 months of 2025, net inflows into Bitcoin ETFs for institutions have exceeded $5 billion. BlackRock's IBIT fund is currently managing over $85 billion in assets, contributing to a more than 26% increase in BTC since the beginning of the year."

However, according to John Glover (CIO at Ledn), while the participation of institutions has helped reduce the volatility of Bitcoin, they are also the group of investors who tend to "sell first, think later" when facing risks. They are under pressure from shareholders, quarterly financial reports, and do not act based on ideals.

"When tensions rise, they will not hesitate to unload their inventory."

Chen also warned: if the market reverses, quantitative funds and high-frequency trading will be the first to withdraw. However, some experts like Marcin Kazmierczak (Redstone) believe that it is the institutions that have brought a long-term investment mindset and more systematic risk management to the cryptocurrency market.

Behind Funding Models to Accumulate Bitcoin

Large companies often use debt to purchase BTC – a strategy that helps to expand assets but also carries risks. According to Redbox Global, by 2028, companies like MARA Holdings and Strategy will face a debt maturity wall worth 12.8 billion USD.

"Despite holding over 725,000 BTC, they are still burning money every quarter to pursue a strategy of borrowing – selling shares – buying Bitcoin. If the stock price crashes, they may be forced to liquidate BTC to raise capital."

Chen revealed that Strategy has raised over 42 billion USD since 2020 to buy BTC at an average price of 71,268 USD. This strategy is effective in a bull market, but it makes the business vulnerable when the market turns, especially if convertible bonds reach the mandatory conversion point.

In addition, a study shows that when the debt/equity ratio exceeds 30% and asset prices drop by 20%, the risk of default increases by more than 40%.

However, Glover believes that companies with sustainable financial structures – such as low borrowing rates and flexible maturity periods – can still withstand a bear market. But for new names, which do not have strong internal capabilities, being forced to sell Bitcoin to repay debts is entirely possible.

"Just look at Tesla's $97 million loss to understand how dangerous it is to 'hold BTC without a strategy.'"

If organizations start to sell off – What will happen to Bitcoin?

One of the biggest risks today is the concentration of BTC in the hands of a few large companies. Currently, 3 public companies hold a total of about 695,000 BTC – equivalent to more than 3.3% of the global supply.

"When a company owns nearly 3% of the total BTC supply like Strategy, it is not only an advantage but also a risk. If they are forced to sell due to financial pressure, the widespread sell-off will deplete liquidity and cause prices to plummet out of control," Glover warned.

And when BTC drops sharply, it is not just Bitcoin that is affected. History shows that altcoins and meme coins can drop as much as 2-3 times compared to BTC when large amounts of money leave the market.

"If treasury companies unload large quantities, key support levels will be broken, panic sentiment will spread quickly and push the market into a prolonged downturn lasting for months," Chen said.

What determines the resilience of companies holding Bitcoin?

In addition to market factors, experts also listed some macro barriers such as:

Chen also noted that if legal policies such as the Clarity Act are passed, the reduced compliance costs will help companies maintain long-term BTC strategies.

Although the Bitcoin investment strategies of institutions are currently proving effective, the bear market will be the real test. Those who are well-prepared, with solid capital structures and clear long-term strategies will prevail. In contrast, businesses that are overly leveraged and completely reliant on BTC prices will be the losers.

"A bear market cannot wipe out Bitcoin - but it will show us who really believes in the future of this asset," Glover concluded.

Annie