Burry's Critical View of Bitcoin: Bankruptcy Risks for Companies

DataChief · 2026-02-12T06:15:06+00:00

Michael Burry warns that corporations heavily invested in Bitcoin face financial risks due to its volatility. He cautions that a significant price drop could lead to corporate bankruptcies and a systemic crisis, highlighting the systemic risks of digital asset dependence.

DataChief

2026-02-12 06:15:06

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The renowned investor Michael Burry has recently issued a warning about the financial dangers facing corporations with significant Bitcoin holdings. While Bitcoin’s current price stands at $67.17K, Burry maintains a cautious outlook regarding the digital asset’s volatility.

According to Burry’s analysis, a substantial correction in Bitcoin’s price could trigger severe financial instability in companies that rely on their cryptocurrency holdings as balance sheet assets. The investor argues that Bitcoin has lost its original characterization as “digital gold,” transforming into a highly volatile and speculative asset.

Burry’s main concern is that corporate bankruptcies resulting from Bitcoin losses could trigger a domino effect in financial markets, potentially leading to a systemic crisis. He emphasizes that the accumulated corporate exposure to Bitcoin represents a latent systemic risk that markets have not yet properly assessed.

This warning reflects Burry’s historical position as an accurate predictor of financial instabilities, once again highlighting his focus on the vulnerabilities of the modern financial system linked to the growing dependence on digital assets in corporate portfolios.

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