Changpeng Zhao, founder and former CEO of the world’s largest cryptocurrency exchange Binance, spoke about the growing number of Bitcoin (BTC) and altcoin treasury companies.
Speaking at the Bitcoin Asia 2025 conference, CZ stated that the cryptocurrency treasury company (DAT) model is important but carries multiple risks.
CZ said that companies holding cryptocurrencies need to go through and survive a bear market in order to be successful and see real growth.
CZ noted that companies adopting a DAT strategy can only achieve real growth after a long-term bear market or “crypto winter.”
Noting that some public companies create cryptocurrency reserves to boost their stock prices, CZ said that these companies often lack the ability to manage these assets.
CZ also noted that some companies are raising funds to invest directly in other crypto companies, and reiterated that it is essential for DAT companies to experience at least one crypto winter.
Companies adopting a cryptocurrency treasury strategy currently face very high risks. These risks need to go through at least one bear market before they can mitigate and achieve real growth.
They support stock prices by accumulating cryptocurrencies, but they lack operational capability and portfolio management.”
At this point, CZ cited Strategy, the company of the biggest institutional Bitcoin bull Michael Saylor, as an example, and said that Strategy made a loss in its first cycle but proved its strength and success by surviving the bear market.
CZ recently warned investors in DAT companies that they should be wary of the risk of sharp price fluctuations caused by cyclical volatility.
*This is not investment advice.