Many Bitcoin treasury companies will inevitably fail, bringing the threat of systemic risk when they do, according to venture capital firm Breed.

Particularly vulnerable are firms with market values near the value of the BTC they hold, Breed said in a new report titled “The $Strategy Strategy Proliferation.”

In it, Breed argues that there are two types of Bitcoin treasury companies: those that add BTC as an investment separate from their main business operations, and pure-play Bitcoin treasury firms.

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