Corporate Bitcoin Adoption Risks Identified as ‘Balance Sheet Roulette’ in New Report
Sentora released a report on the adoption of bitcoin (BTC) as a treasury asset, labeling it a "balance sheet roulette." Key points include:
- 213 entities hold 1.79 million BTC, valued at $214 billion as of August 2025.
- Public companies own 71.4% of these holdings, approximately 1.27 million BTC.
- The strategy involves borrowing fiat to acquire bitcoin, leveraging its scarcity and past performance.
However, the report identifies significant risks:
- Accumulating BTC with borrowed funds constitutes a "negative carry trade" since bitcoin yields no income.
- Dependence on price appreciation for returns creates structural fragility.
- A decline in price could lead to collateral issues, affecting stock prices and capital raising efforts.
- Unprofitable companies relying on BTC market gains may need to sell holdings, exacerbating downward pressure on prices.
The report emphasizes the lack of a safety net for these strategies and compares the situation to gold, noting that bitcoin also lacks yield and presents logistical challenges. Until bitcoin can evolve into a productive digital asset offering reliable yields, it remains a speculative investment.