Updated on:12/27/2025 06:00 PM 
As an increasing number of publicly traded companies add Bitcoin (BTC) to their corporate balance sheets, Standard Chartered has issued a cautionary report shared exclusively with CryptoSlate regarding potential liquidation vulnerabilities should market conditions deteriorate.
Research conducted by Geoffrey Kendrick, head of digital assets research at the financial institution, reveals that 61 organizations currently maintain Bitcoin reserves within their treasury operations, collectively representing 3.2% of the entire future Bitcoin supply.
This strategic allocation has accelerated dramatically in recent quarters, with numerous enterprises following Strategy’s lead, doubling their Bitcoin holdings from 50,000 to 100,000 BTC within a mere 60-day period.
According to Standard Chartered’s analysis, many of these corporate investors have established their positions at premium valuation levels, with net asset value (NAV) entry multiples frequently exceeding 1, indicating heightened susceptibility to market fluctuations.
Kendrick specifically noted that for approximately half of these corporations, the average acquisition cost surpasses $90,000 per Bitcoin, meaning even moderate market corrections could trigger substantial losses and potential reputational consequences for organizations attempting to replicate Strategy’s approach without comparable risk management frameworks or financial foundations.
“The inherent volatility of Bitcoin cannot be overstated,” Kendrick emphasized, “making organizations with such elevated average entry points particularly susceptible to downside movements.”
The report establishes that a 22% decline below the average purchase price may represent the critical threshold at which liquidation risks become tangible for companies maintaining Bitcoin in their treasury reserves.
Historical market data, particularly Core Scientific’s experience during 2022, serves as a reference point for potential stress scenarios outlined in the analysis.
Visual data within the report illustrates significant variation in acquisition costs across different public companies, with substantial concentration in the $90,000 to $110,000 price range. Should market conditions reverse sharply, organizations with limited financial flexibility or facing investor pressure might be compelled to liquidate their positions.
Notwithstanding these potential vulnerabilities, Bitcoin’s emergence as a preferred treasury asset among corporate entities shows no signs of abating. Kendrick attributes this sustained interest to NAV multiples exceeding traditional benchmarks and persistent inefficiencies in conventional financial systems’ methodologies for crypto asset valuation.
Standard Chartered’s conclusions suggest that this ongoing institutional embrace reflects a combination of genuine long-term belief and the growing anxiety of missing out on potential upside, especially against the backdrop of recent positive market performance in the cryptocurrency sector.
“As Bitcoin maintains its position above the $100,000 psychological barrier, the momentum narrative continues to dominate market sentiment,” Kendrick observed. “Nevertheless, our analysis underscores the importance of implementing sophisticated risk mitigation strategies, as companies integrating BTC into their financial frameworks may confront the same volatility challenges that previously pushed mining operations and speculative entities to financial distress.”
