‘Attack of the Clones’: Coinbase Raises Alarm on Risks With Bitcoin Treasury Model

Coinbase issued a terrible warning to public trading companies on Thursday Bitcoin: Gettings can be addicted now – but if and when music stops and prices fall, the disaster could follow.

In a report On the outcomes of the cryptocurrency for the second half of 2025, the head of research by Coinbase David Duong predicted that the recent trend of US corporations that could be in the near future, but sets “system risks” for the entire cryptocurrency of ecosussistem in the middle period.

In the midst of large public trading companies, such as strategy and Tesla, they spend billions of dollars to buy bitcoin, over a hundred other such companies that have trade on Wall Street have followed this in recent months. A total of 126 public trading companies currently have a collective 819,857 BTC, according to Bitcointreasuries.net– The sum is worth more than $ 87 billion on writing.

This dynamics created the potential scenario “The Clone attack”, says Coinbase, in which a viral trend could soon trigger devastating consequences.

The incentive for a public commercial company to buy Bitcoin has become too attractive to neglect in December, Coinbase’s duong said. That month, new accounting rules entered into force by allowing such companies to count unrealized crypto gains on their books.

Development occurred to match a large (and still permanent) rise for bitcoin. Thus, in recent months, dozens of public trading companies have collectively invested billions of dollars in the main cryptic currency in the world – as a means of easy -to -pumping shares.

Even his own media company President Donald Trump $ 2.4 billion Last month for the seed of your own bitcoin treasury, after a trend that Gamestop Many other companies have recently advocated.

Duong warns, however, that when the price of Bitcoin starts to fall, these companies – which have raised cheap money to buy a crypto currency by issuing convertible bonds – will have to start paying off their investors and will probably be forced to “”Selling your crypto shares, maybe to loss. “

“So fear is that the non -select sale of many entities would suddenly (to serve these debts) can lead to market liquidations and sales in crypto wider,” Duong wrote.

“If prices start to fall and these subjects experience a narrowing output, others can hurry and sell, destabilizing the market before any of the actual debt repayment problems are occurring,” he continued.

Although the analyst predicts that such an accident would not be as devastating as the crypto falls, and “he is convinced of Bitcoin’s upward paths, even despite such risks,” he nevertheless categorized the potential damage to such a outcome as “systemic”.

In recent days, analysts have started ringing a similar alarm bell. Last week Standard Chartered intended Those approximately half of the non-crypto of public trading companies with Bitcoin Treasury would go under water if the token fell below $ 90,000.

Last month, Coinbase CEO, Brian Armstrong, said That entry into the Bitcoin reserve, similar to the strategy, would be a “too risky” move in their earlier days.

Edited Andrew Hayward