{"id":73862,"date":"2026-06-11T04:03:58","date_gmt":"2026-06-11T04:03:58","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-treasuries-are-ticking-time-bombs-as-leverage-hits-record-rates-warns-caprioles-charles-edwards\/"},"modified":"2026-06-11T04:03:58","modified_gmt":"2026-06-11T04:03:58","slug":"bitcoin-treasuries-are-ticking-time-bombs-as-leverage-hits-record-rates-warns-caprioles-charles-edwards","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-treasuries-are-ticking-time-bombs-as-leverage-hits-record-rates-warns-caprioles-charles-edwards\/","title":{"rendered":"Bitcoin Treasuries Are Ticking Time Bombs as Leverage Hits Record Rates, Warns Capriole&#8217;s Charles Edwards"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p><span style=\"font-weight:400\"><\/p>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Charles Edwards says bitcoin treasuries are \u201clevering up at record rates\u201d on debt-fueled growth.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">He likens the two hundred bitcoin treasuries in the market today to the leveraged investment trusts of 1929.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The warning lands as Strategy holds about 76% of corporate BTC and buying collapses elsewhere.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p><\/span><\/p>\n<h2><span style=\"font-weight:400\">A Year-Old Warning Resurfaces<\/span><\/h2>\n<p><span style=\"font-weight:400\"> <span>Bitcoin<\/span> treasury companies are taking on debt at record rates to fund their <span>bitcoin<\/span> purchases, Capriole Investments founder Charles Edwards warned<\/span><span style=\"font-weight:400\">. He tied the trend back to a call he made in October 2025, arguing that the digital asset treasury (DAT) model is structurally incentivized to rely on borrowing to manufacture returns, further adding: <\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight:400\">\u201c <span>Bitcoin<\/span> DATs are levering up at record rates. Back in Oct 2025 I warned exactly this would happen as this unsustainable business model is incentivised to rely on debt to generate fake \u2018yield\u2019.\u201d<\/span><\/p>\n<\/blockquote>\n<figure id=\"attachment_821785\" aria-describedby=\"caption-attachment-821785\" style=\"width:1577px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-821785\" class=\"wp-caption-text\">Chart showing <span>crypto<\/span> treasury companies\u2019 growing debt, per Capriole<\/figcaption><\/figure>\n<p><span style=\"font-weight:400\">His core objection is to how the strategy generates its headline returns. A digital asset treasury, or DAT, is a public company that raises capital (often through debt or share sales) to accumulate <span>bitcoin<\/span> on its balance sheet. The model, pioneered by Strategy Inc. (Nasdaq: MSTR), can amplify gains when <span>bitcoin<\/span> rises, but it also adds <span>leverage<\/span> so that when prices fall, firms that borrowed to buy can face pressure to raise cash, service debt, or sell.<\/span><\/p>\n<h2><span style=\"font-weight:400\">The 1929 Comparison and \u201cFake Yield\u201d Narrative<\/span><\/h2>\n<p><span style=\"font-weight:400\">Earlier this year, Edwards <a href=\"https:\/\/x.com\/caprioleio\/status\/2018817163864444950\" target=\"_blank\" rel=\"noopener noreferrer\">compared<\/a> the rapid buildout of DATs to the leveraged investment trusts of 1929, calling them a \u201c<\/span><span style=\"font-weight:400\"> <span>leverage<\/span> explosion waiting to happen<\/span><span style=\"font-weight:400\">.\u201d He pointed to the roughly 200 <span>bitcoin<\/span> treasuries now in existence and argued that the more they lever up, the more a drawdown can cascade through forced deleveraging, with each seller pushing the price lower for the next.<\/span><\/p>\n<p><span style=\"font-weight:400\">Moreover, his \u201cfake yield\u201d charge cuts at how treasury firms market themselves, given that many tout a bitcoin-per-share growth metric as a form of yield. Edwards contends the figure is largely a product of issuing new debt and shares rather than genuine income. In simpler terms, it can be viewed as a flywheel that works only while capital markets stay open and prices stay high.<\/span><\/p>\n<figure id=\"attachment_821795\" aria-describedby=\"caption-attachment-821795\" style=\"width:766px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-821795\" title=\"'Levering up at Record Rates': Capriole's Charles Edwards Warns Bitcoin Treasuries Are Ticking Bombs\" src=\"https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/06\/levering-up-at-record-rates-caprioles-charles-edwards-sounds-bitcoin-treasury-alarm3_nwmk.jpg\" alt=\"'Levering up at Record Rates': Capriole's Charles Edwards Warns Bitcoin Treasuries Are Ticking Bombs\" width=\"766\" height=\"852\" srcset=\"https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/06\/levering-up-at-record-rates-caprioles-charles-edwards-sounds-bitcoin-treasury-alarm3_nwmk-270x300.jpg 270w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/06\/levering-up-at-record-rates-caprioles-charles-edwards-sounds-bitcoin-treasury-alarm3_nwmk-696x774.jpg 696w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/06\/levering-up-at-record-rates-caprioles-charles-edwards-sounds-bitcoin-treasury-alarm3_nwmk.jpg 766w\" sizes=\"auto, (max-width: 766px) 100vw, 766px\"\/><figcaption id=\"caption-attachment-821795\" class=\"wp-caption-text\">Image source: X<\/figcaption><\/figure>\n<p><span style=\"font-weight:400\">With so many public companies and exchange-traded funds (ETFs) now holding <span>bitcoin<\/span>, a synchronized unwind, in his view, could turn an ordinary correction into something sharper.<\/span><\/p>\n<h2><span style=\"font-weight:400\">The Strain Is Already Showing<\/span><\/h2>\n<p><span style=\"font-weight:400\">The warning arrives as the treasury model faces real stress, with <span>Bitcoin.com<\/span> News reporting earlier this month that <span>bitcoin<\/span> treasury companies are <a href=\"https:\/\/news.bitcoin.com\/bitcoin-treasury-companies-face-a-borrow-or-sell-test\/\">facing a borrow-or-sell test<\/a><\/span><span style=\"font-weight:400\">, with the question shifting from accumulation to <span>liquidity<\/span> (i.e. how firms fund dividends, debt costs, and other commitments without cutting <span>BTC<\/span> exposure).<\/span><\/p>\n<p><span style=\"font-weight:400\">That pressure has reached the top of the market as <\/span><span style=\"font-weight:400\">Cryptoquant data showed <\/span><a href=\"https:\/\/news.bitcoin.com\/bitcoin-treasury-companies-pull-back-in-2026-as-strategy-accelerates-purchases-cryptoquant\/\"><span style=\"font-weight:400\">treasury buying outside Strategy has collapsed<\/span><\/a><span style=\"font-weight:400\"> with non-Strategy firms buying a combined 1,000 <span>BTC<\/span> over 30 days, a 99% drop from an August 2025 peak. Consequently, Strategy now holds roughly 76% of all corporate <span>bitcoin<\/span>.<\/span><\/p>\n<p><span style=\"font-weight:400\">Others are leaning harder into <span>leverage<\/span>. Japan\u2019s Metaplanet, for instance, executed about 20 rounds of debt-for- <span>BTC<\/span> financing in roughly two years, including zero-coupon bonds, as it chases a 100,000 <span>BTC<\/span> target. <span>Bitcoin.com<\/span> News reported the company posted a <\/span><a href=\"https:\/\/news.bitcoin.com\/japans-metaplanet-posts-725m-q1-loss-as-bitcoin-stack-reaches-40177-btc\/\"><span style=\"font-weight:400\">$725 million quarterly loss<\/span><\/a><span style=\"font-weight:400\"> even as its stack reached 40,177 <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">BTC<\/a>.<\/span><\/p>\n<h2><span style=\"font-weight:400\">Why It Matters Now<\/span><\/h2>\n<p><span style=\"font-weight:400\"> <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">Bitcoin<\/a> recently posted its <\/span><a href=\"https:\/\/news.bitcoin.com\/why-is-bitcoin-crashing-worst-week-of-2026-59100-low-and-more-than-half-of-all-btc-now-in-the-red\/\"><span style=\"font-weight:400\">worst week since the 2022 FTX collapse<\/span><\/a><span style=\"font-weight:400\">, sliding below $60,000 as record exchange-traded fund (ETF) outflows hit the market. In a downturn, the financial engineering that powered the treasury boom on the way up can work in reverse, pressuring the most indebted firms first.<\/span><\/p>\n<p><span style=\"font-weight:400\">Looking ahead, if <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">BTC<\/a> recovers, the <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-leverage-in-crypto-trading\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">leverage<\/a> that worries Edwards could once again look like savvy financial engineering. If the downturn drags on, the most leveraged treasuries will be the first to feel it.<\/span><\/p>\n<p> <!-- --><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/charles-edwards-bitcoin-treasuries-levering-up-record-rates\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Charles Edwards says bitcoin treasuries are \u201clevering up at record rates\u201d on debt-fueled growth. He likens the two hundred bitcoin treasuries in the market today to the leveraged investment trusts of 1929. The warning lands as Strategy holds about 76% of corporate BTC and buying collapses [&hellip;]<\/p>\n","protected":false},"author":3947362404,"featured_media":73863,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/73862"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362404"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=73862"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/73862\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/73863"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=73862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=73862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=73862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}