Binance Founder Warns of Risks in Bitcoin Reserve Trend

Former head of the largest cryptocurrency exchange Binance, Changpeng Zhao (CZ), has cautioned about the risks associated with the widespread establishment of corporate reserves based on the first cryptocurrency.

These companies are taking risks.
Every company takes risks.
Risks are not binary like 0 or 1.
Risks are a range from 0 — 100.
With the right balance, you can achieve the best risk/ROI ratio that works for you.
Risks can/must be managed.
Not taking risks is a risk in itself. https://t.co/LXsQceWNRZ

— CZ ? BNB (@cz_binance) June 3, 2025

In response to a tweet by user X under the nickname BΞRIT, listing bitcoin treasuries created in May, CZ shared his perspective on the fundamentals of risk management. According to him:

• every company takes risks;
• risks are not binary like 0 and 1 — they range from 0 to 100;
• with the right balance, one can achieve an optimal risk-to-return ratio;
• risks can and must be managed;
• not taking risks is also a risk.

In the comments to the post, a user with the nickname Bene asked what Zhao is putting on the line. He replied:

“Too much. I have more fiat (stables) than I would like. Just got more. Need to reduce risk in this area.”

Another user, Vader.BNB, inquired how to find the right balance in taking risks to achieve maximum returns, as it involves a whole spectrum of aspects requiring management.

CZ responded:

“Think about extreme scenarios. Will you manage if something familiar suddenly disappears? For example, if bitcoin crashes to zero. Or if a revolution occurs and your fiat currency becomes worthless.”

According to him, such scenarios are not mere fantasy and in reality “occur more often than one would like.”

Earlier, Zhao predicted that bitcoin could rise to $1 million in the current market cycle.