CryptoMediaClub
Tuesday, July 29, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home Analysis

StanChart warns of potential liquidation risks for corporations adopting Bitcoin at high prices

03.06.2025
A A
0
119
VIEWS
ShareShare

A growing number of public companies are buying Bitcoin (BTC) for their balance sheets, but many could be exposed to significant losses if prices drop, according to a new Standard Chartered report shared with CryptoSlate.

The bank’s research, authored by head of digital assets research Geoffrey Kendrick, highlighted that 61 companies now hold Bitcoin in their corporate treasuries, collectively controlling 3.2% of the total Bitcoin supply that will ever exist.

This trend has surged in recent months, with imitators following in Strategy’s footsteps increasing their Bitcoin holdings from 50,000 BTC to 100,000 BTC in just two months.

High entry prices

Standard Chartered warned that many of these firms have entered the market at high valuations, often with net asset value (NAV) entry multiples above 1, signaling overexposure to price swings.

Kendrick emphasized that for at least half of these firms, the average purchase price exceeds $90,000 per Bitcoin and even a modest correction could lead to losses and reputational damage for firms seeking to mimic Strategy without similar risk tolerances or capital structures in place.

He warned that “Bitcoin is volatile” and such high average entry points make some companies particularly vulnerable.

According to Kendrick:

“We identify a pain level of 22% below the average purchase price as a potential liquidation level.”

He explained that a 22% drop below the average purchase price may be the threshold at which liquidation risk becomes real for companies holding Bitcoin in treasuries.

Drawing from historical market events, the report cited Core Scientific’s 2022 experience as an indicator of potential stress levels.

The report included a chart showing a wide spread in purchase prices across public companies, with many clustered in the $90,000 to $110,000 range. If markets reverse sharply, firms with thinner balance sheets or investor pressure could be forced to sell.

Demand rising despite risks

Despite the risks, Bitcoin’s role as a strategic treasury asset continues to gain traction among corporates. Kendrick attributed this to NAV multiples above 1 and lingering inefficiencies in how traditional finance evaluates crypto holdings.

Standard Chartered’s findings suggest that this wave of adoption is being driven by both long-term conviction and the fear of missing out, especially in light of recent bullish momentum in crypto markets.

Kendrick wrote:

“While I see these multiples as justified for now (due to market inefficiencies created by regulatory and investment committee conservatism), over time that justification will fade.”

As Bitcoin trades above the $100,000 mark, the momentum trade remains intact. However, Standard Chartered’s warning adds a note of caution: without prudent risk management, companies embracing BTC could face the same volatility that once pushed miners and speculators to the brink.

The post StanChart warns of potential liquidation risks for corporations adopting Bitcoin at high prices appeared first on CryptoSlate.

Share9Tweet6ShareSharePin2

Related Posts

Global stablecoin searches hit all-time high with Washington leading traffic
Analysis

Global stablecoin searches hit all-time high with Washington leading traffic

29.07.2025
0

Stablecoin search interest reached an all-time high this month, days before the White House signed the GENIUS Act into law....

Read moreDetails
BlackRock’s ETHA becomes 4th-largest ETF by 30‑day inflows as Ethereum funds aim for $10B

BlackRock’s ETHA becomes 4th-largest ETF by 30‑day inflows as Ethereum funds aim for $10B

29.07.2025
Bitcoin steadies near $114,800 but fragility risk rises as leverage climbs

Bitcoin steadies near $114,800 but fragility risk rises as leverage climbs

29.07.2025
Increased market volatility as the U.S.–Europe tariff deadline looms

Increased market volatility as the U.S.–Europe tariff deadline looms

27.07.2025
Bitcoin’s four-year cycle loses grip as maturing market reshapes dynamics

Bitcoin’s four-year cycle loses grip as maturing market reshapes dynamics

25.07.2025
Load More
Next Post
Countdown Begins: BTCBULL Presale Enters Explosive Final 26 Days 

Countdown Begins: BTCBULL Presale Enters Explosive Final 26 Days 

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

How Excessive Will Cardano (ADA) Value Explode After CPI? These Key Ranges Might Resolve its Destiny

How Excessive Will Cardano (ADA) Value Explode After CPI? These Key Ranges Might Resolve its Destiny

5 months ago
First Regulated Crypto Derivatives Exchange in Europe Emerges

First Regulated Crypto Derivatives Exchange in Europe Emerges

12 months ago
USDC Expanding on Polygon Next Week Boosting Adoption

USDC Expanding on Polygon Next Week Boosting Adoption

2 years ago
Trail of Bits completes Worldcoin security audits, finds no vulnerabilities

Trail of Bits completes Worldcoin security audits, finds no vulnerabilities

1 year ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Global stablecoin searches hit all-time high with Washington leading traffic

PayPal Expands Crypto Payment Acceptance in U.S.

US Seeks to Claim $2.4M Bitcoin Seized from Chaos Ransomware Group

Tron Inc. Registers $1B in Securities to Pivot Into TRX-Focused Crypto Treasury

Bitcoin ETFs Log Third Day of Gains as Ethereum Inflows Hit 17-Day Streak

Interactive Brokers Mulls Stablecoin Launch to Serve Users

Trending

The Future of Bitcoin BTC Income: EarnMining App Offers Stable Daily Rewards
All news

The Future of Bitcoin BTC Income: EarnMining App Offers Stable Daily Rewards

29.07.2025
0

EarnMining, a fast-growing name in digital finance, has officially launched a new BTC-based mobile earning app that...

93% of Financial Institutions Plan to Implement AI Agents in Compliance

93% of Financial Institutions Plan to Implement AI Agents in Compliance

29.07.2025
Major Breach Study Reveals Widespread Leaks of Bank Statements, SSNs, and Crypto Keys

Major Breach Study Reveals Widespread Leaks of Bank Statements, SSNs, and Crypto Keys

29.07.2025
Global stablecoin searches hit all-time high with Washington leading traffic

Global stablecoin searches hit all-time high with Washington leading traffic

29.07.2025

PayPal Expands Crypto Payment Acceptance in U.S.

29.07.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz