'Attack of the Clones': Coinbase Raises Alarm on Risks With Bitcoin Treasury Model
Coinbase warns publicly traded companies heavily investing in Bitcoin of potential systemic risks. The trend of corporations accumulating Bitcoin treasuries, spurred by new accounting rules allowing unrealized gains, has led to 126 companies holding a total of 819,857 BTC worth over $87 billion. This could create a "clone attack" scenario, risking market stability if prices fall. Companies that raised funds through convertible bonds to buy Bitcoin may face pressure to sell during downturns, leading to indiscriminate selling and broader market liquidations. Analysts, including those from Standard Chartered, predict significant losses for firms if Bitcoin drops below $90,000. Despite these risks, confidence in Bitcoin's long-term growth remains.
