For Business · Lesson 3 of 7
Treasury risk: holding crypto on a balance sheet
Education only. Not investment, legal or tax advice. We do not pick coins, vendors or platforms.
Holding crypto is a decision, not a side effect of accepting it. If you don't convert receipts, you are holding. This lesson covers the risks and the policy questions. It doesn't tell you whether or how much to hold.
The six risks
- Price risk. Many crypto assets have fallen 50–80% in past downturns. Ask: could the business still pay payroll, rent and taxes if the holding fell by that much tomorrow?
- Liquidity risk. In stress, spreads widen and withdrawals can pause. Money you need within 12 months is usually kept in cash.
- Counterparty risk. An exchange, lender or custodian can fail or freeze withdrawals. Past failures left customers waiting years.
- Stablecoin risk. A stablecoin can lose its peg if reserves, redemptions or rules fail.
- Operational risk. Lost keys, wrong addresses, phishing and insider theft (lesson 4).
- Tax and accounting risk. Fair-value swings hit reported profit; taxes may be due on gains even if you haven't converted.
A written treasury policy answers
- What is the purpose of holding (operating float for crypto payments, or something else)?
- Which assets are allowed, on which networks?
- Maximum share of total cash and a hard cap in currency terms.
- Where it is held (which custodians, cold storage), and the maximum with any one provider.
- When balances are converted (for example, daily above a threshold).
- Who approves changes: the policy is approved by the owners or board and reviewed at least yearly.
- What gets reported, how often, and to whom.
Stress test before you hold
Write three scenarios on one page: the holding falls 50%; your main provider freezes withdrawals for 30 days; a stablecoin you hold trades at $0.90 for a week. For each, list the impact on cash, on taxes, and what you would do. If any answer is "we couldn't pay bills", the policy is too aggressive.
Never
- Borrow against crypto to fund operations without expert advice.
- Use leverage or derivatives in a business treasury without a specialist and board approval.
- Chase yield you don't understand. "Yield" means someone is using your assets and you are taking their risk.
Quick check
If you accept crypto and don't convert it, what are you doing?
Holding it, which is a treasury decision with its own risks.
Name two counterparty risks.
An exchange or custodian failing, or freezing withdrawals.
Who should approve the treasury policy?
The owners or the board, reviewed at least yearly.
Sources and further reading
Last reviewed October 30, 2026. Laws and tax rules change; confirm with a licensed professional where you operate. Spotted an error? Tell us.