Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Changpeng Zhao, founder and former CEO of Binance, has urged companies adopting Bitcoin as a treasury asset to fully understand the risks involved with the top crypto.

In a June 3 post on X, Zhao acknowledged that risk is an unavoidable part of doing business, but emphasized the importance of assessing and managing it properly.

According to him:

“Every company takes risks. Risks are not binary like 0 or 1. Risks are a range from 0 – 100.”

He added that failing to take risks may be just as dangerous as taking too much, suggesting that avoidance can lead to missed opportunities or unpreparedness for future shocks.

Meanwhile, Zhao emphasized that risk isn’t inherently negative if approached wisely, saying:

“With the right balance, you can achieve the best risk/ROI ratio that works for you.”

When asked how companies can prepare for worst-case scenarios, Zhao pointed to potential financial collapses, such as a currency losing all value or Bitcoin going to zero, as events businesses must be prepared to endure.

He noted:

“Extreme cases are not that extreme [in real life]. They happen.”

Zhao’s comments follow a wave of companies adopting Bitcoin as a treasury asset.