- CZ emphasizes the long-term nature of DAT models, which involve corporations holding digital assets like Bitcoin or altcoins as part of their treasury.
- He highlights the need for resilience, discipline, and the ability to endure downturns.
- He uses MicroStrategy as an example of a successful DAT model, which incurred significant losses in early cycles but proved its mettle by staying committed through challenging periods.
Hong Kong, September 2025 — At the Bitcoin Asia 2025 conference, Changpeng Zhao (CZ), founder and former CEO of Binance, delivered a compelling, caution-inflected message to companies embracing Digital Asset Treasury (DAT) models. While acknowledging the appeal and potential upside of holding Bitcoin (BTC) and other cryptocurrencies on corporate balance sheets, CZ stressed that this strategy is not for the faint of heart — it is a long-game that demands resilience, discipline, and the ability to endure downturns.
The DAT model refers to corporations deliberately holding digital assets such as Bitcoin or altcoins as part of their treasury — in effect, using crypto holdings as financial reserve assets. The idea has gained traction as institutions look beyond fiat reserve strategies to capture potential upside from cryptocurrencies. However, CZ’s remarks at Bitcoin Asia 2025 underscored that with potential gains come real risks.
CZ’s Key Messages
1. Surviving the Bear Market is Non-Negotiable
One of CZ’s primary points: only companies that weather a crypto winter can truly unlock growth and legitimate success with a DAT approach. Simply acquiring crypto during boom times is not enough.
- He emphasized that many firms buy crypto to boost their stock valuations in good times, but the playing field changes in downturns. Not every company has the expertise or strategy in place to manage the full cycle.
- CZ used MicroStrategy — Michael Saylor’s firm — as a case in point. MicroStrategy incurred significant losses in early cycles but proved its mettle by staying committed through challenging periods.
2. Operational & Portfolio Management Skill Gaps
CZ warned that too many companies are “crypto-treasury curious” but lack the operational backbone to manage these assets properly.
- Managing a treasury with crypto is more complex than holding traditional assets. The volatility, security risk, hedge strategies, accounting, regulatory compliance, and risk exposure are all magnified.
- He cautioned that raising capital to invest in other crypto firms or buying crypto for stock price boosts, without adequate oversight or expertise, can leave companies vulnerable.
3. Every DAT Company Must Live Through at Least One Crypto Winter
A consistent theme from CZ was that enduring at least one severe down-market period is essential. This isn’t just about holding long enough; it’s about proving the sustainability and resilience of the strategy.
- For companies that have only ever seen “upside,” the first major drop often reveals whether the internal governance, funding cushion, risk-management, and leadership are up to the task.
- He argued that real growth in this strategy comes not from luck during bull markets, but from surviving the troughs.
4. Cyclicality & Sharp Swings
Investors in companies pursuing DAT strategies should exercise caution. The crypto markets go through cycles of rapid growth, sharp corrections, and sometimes extended winters.
- Sharp price swings are part of the territory. CZ urged investors to understand that what looks like profit in one quarter can quickly reverse in the next.
- The ability of a DAT-company to manage debt, maintain liquidity, and stay solvent during bearish phases are as important, or perhaps more so, than its gains during bullish phases.
Why DATs are Gaining Traction
While CZ was cautionary, he did not dismiss the DAT model. Rather, he offered a reality check within a broader narrative of crypto adoption, institutional interest, and changing financial norms.
- At Bitcoin Asia 2025, a major theme was how Asia is stepping up in global crypto finance and regulation. Asia is no longer just following global trends, but increasingly shaping them, especially when it comes to digital asset regulation and institutional adoption.
- The regulatory environment and policy frameworks are catching up, which makes governance, custody solutions, and compliance more feasible for companies. Yet, regulatory clarity in multiple jurisdictions is still uneven.
Risks That Companies Must Mitigate
From CZ’s speech, several key risk vectors emerge — areas where companies engaging DAT strategies are likely to face trouble if unprepared.
| Risk Area | What Can Go Wrong |
| Volatility & Market Crash | Sudden drops in crypto valuations can devastate balance sheets if hedges, reserves, or liquidity are inadequate. |
| Operational Security | Poor custody, weak security practices, or governance lapses can lead to theft, fraud, or loss. |
| Regulatory Uncertainty | Changes in tax law, securities law, or classification of assets can impose unexpected costs or force adjustments. |
| Liquidity Management | Crypto assets are not always instantly liquid — in distressed markets especially, selling quickly may incur steep costs. |
| Public Perception & Stock Price Pressure | Public companies may experience swings in investor sentiment based on crypto holdings; stock could be punished in bear phases. |
CZ’s central message was: you must plan for these risks ahead of time, or you risk being burned when the next downward cycle hits.
Case in Point: MicroStrategy
To put theory into perspective, CZ repeatedly cited MicroStrategy, Michael Saylor’s firm, as a rare success story among DAT adopters.
- In their early stages, MicroStrategy suffered significant losses due to timing and volatility. But by remaining committed, managing their exposures, and averaging down when possible, they were able to reduce their cost basis over time.
- Their journey illustrates that holding digital assets through thick and thin can work — if the company has enough capital, discipline, and internal structure to absorb losses and learn from cycles. Otherwise, the strategy can strain finances severely.
Changpeng Zhao’s address at Bitcoin Asia 2025 delivers a powerful message: the Digital Asset Treasury strategy has promise, but it is neither easy nor risk-free. For companies to extract real value, they must prepare financially, build strong governance, ensure operational and regulatory competence, and, crucially, endure the inevitable crypto winters. Only through surviving the lows can the highs become sustainable. For investors, the advice is clear: tread carefully, scrutinize exposure, and respect the volatility. As crypto moves further into mainstream corporate finance, the success stories will belong to those who balanced boldness with prudence.
Disclaimer: CryptopianNews shares this for learning and info only. It’s not meant to be financial or investment advice. Crypto markets change a lot and move quickly. Investing in them can be risky. You should always look into things yourself. Talk to a trained financial advisor before making any choices about investing.
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