Changpeng Zhao, founder and former CEO of Binance, has urged companies adopting Bitcoin as a treasury asset to carefully assess the associated risks. On 3 June, Zhao said risk is a business constant, varying in degree rather than being simply present or absent.

Zhao warned that avoiding risk can be as harmful as over-taking it, risking missed chances or unpreparedness for shocks. He stressed that, with a balanced approach, companies can find an optimal risk-to-reward ratio suited to their needs.

Zhao stressed companies must prepare for extreme events like currency collapse or Bitcoin losing all value. His comments come amid growing corporate interest in Bitcoin treasuries, including Trump Media and GameStop.

Experts explain that companies are increasingly turning to Bitcoin to reduce counterparty risk and currency instability. Bitcoin's fixed supply and predictable issuance make it a strong defensive asset and aid multinational cross-border transactions.

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