Changpeng Zhao, the founder and former CEO of Binance, has called on companies to adopt Bitcoin as a treasury asset to fully understand the risks associated with this leading cryptocurrency.
In a post on June 3 on X, Zhao acknowledged that risk is an unavoidable part of business but emphasized the importance of assessing and managing risk reasonably.
According to him:
"Every company accepts risk. Risk is not binary like 0 or 1. Risk lies on a spectrum from 0 to 100."
He added that not accepting risk is just as dangerous as accepting too much risk, suggesting that avoidance can lead to missed opportunities or unpreparedness for future shocks.
Meanwhile, Zhao emphasized that risk is inherently not negative if approached wisely:
"With the right balance, you can achieve the best risk/ROI ratio that suits you."
When asked how companies can prepare for worst-case scenarios, Zhao pointed to potential events such as financial collapse, such as a currency losing all value or Bitcoin dropping to zero, as events businesses must prepare to endure.
He noted:
"Extreme cases are not too extreme [in real life]. They happen."
Zhao's comments come after a wave of companies adopting Bitcoin as a treasury asset.
According to data from Bitcoin Treasuries, there are currently more than 200 companies holding Bitcoin, with notable companies like Trump Media and GameStop recently joining.
According to data compiled by Hodl15Capital, the top 100 holders together control more than 814,000 BTC. Strategy (formerly MicroStrategy) remains the largest holding organization, with over 580,000 BTC under management.
Why Bitcoin Treasury Bonds Are Becoming Increasingly Popular
Market observers explain that this shift is due to Donald Trump's pro-Bitcoin administration and the belief that the leading cryptocurrency provides protection against counterparty risk and currency instability.
Cryptocurrency company River explains that holding Bitcoin allows companies to minimize dependence on third parties, especially if they choose self-custody or work with custodians that do not lend assets or only issue over-collateralized loans.
The company also points out that Bitcoin is a valuable tool for multinational companies operating in various currencies. According to River, Bitcoin treasury can serve as a bridging asset, reducing friction and costs of cross-border transactions.
At the same time, River claims that BTC can act as a defensive asset during periods of low interest rates or inflation. The company notes that Bitcoin's limited supply and predictable issuance give it a unique advantage in preserving long-term value, unlike fiat currencies that are prone to depreciation.