Crypto Treasury Companies Risk Dotcom Style Collapse

September 28, 2025 — The rise of crypto treasury companies is drawing comparisons to the dotcom bubble of the early 2000s. According to Ray Youssef, founder of NoOnes app, investor psychology has not changed in 25 years, with overzealous capital flooding into bold visions without sustainable models.

While some firms may survive downturns, many could face collapse and be forced to liquidate holdings, creating conditions for the next crypto bear market.

Investor Psychology Driving Risks

The same hype-driven psychology that fueled the dotcom boom now drives crypto treasury companies. Just as early internet firms sold futuristic visions without revenue, many treasuries are stockpiling crypto without stable business models. This leaves them vulnerable when markets turn bearish.

Ray Youssef highlighted that Web3 adoption narratives are “easy to sell,” attracting opportunists and dreamers. But hype without sustainability risks inflating valuations that cannot be supported long term.

Lessons from Past Market Crashes

The dotcom bust is not the only historical parallel. Other financial collapses also show how excessive leverage, poor risk controls, or unsustainable growth can devastate markets. Analysts warn that if crypto treasury companies repeat these mistakes, their liquidations could accelerate the next major downturn.

Responsible Management as a Lifeline

Not all crypto treasury companies are destined to fail. Firms that manage risk carefully may survive and even thrive. Issuing equity instead of debt lowers bankruptcy risk. Aligning debt repayment with Bitcoin’s four-year cycles avoids repayment during bear markets. Focusing on capped assets like BTC or ETH ensures long-term value recovery, unlike volatile altcoins.

Companies that also run revenue-generating businesses are stronger than those acting solely as treasury vehicles. These strategies mirror the few dotcom survivors, like Amazon, that endured downturns by focusing on fundamentals.

Implications for the Market

If crypto treasury companies collapse, forced liquidations could trigger a cascading effect across digital assets, amplifying volatility and reducing institutional confidence. On the other hand, survivors with disciplined strategies could normalize corporate adoption of crypto, helping build a more stable and mature financial ecosystem.