CZ on Bitcoin Reserve: Not taking risks is the biggest risk!

Recently, Bitcoin reserve companies have been emerging like mushrooms after rain. Binance founder CZ believes that these companies are taking on risks and shared his views on Risk Management. Chain News also compiled the price increases of these stocks over the past month, most of which have soared like newly launched meme coins. However, if the goal is to gain attention based on a non-profitable core business, once the news is released and the hype subsides, the stock prices typically will not recover.

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.

— CZ BNB (@cz_binance) June 3, 2025

Binance founder CZ: These companies are taking on risk.

Binance founder CZ believes that these companies are taking on risks and shared his views on Risk Management as follows:

Every company undertakes risks, and risks are not black and white (0 or 1), but a spectrum (0~100).

With the right balance, find the risk/ROI ratio that works best for you

Risk must be managed, and not taking on any risk is also a form of risk.

CZ did not express whether he agrees or disagrees with the practices of these Bitcoin reserve companies, but simply encourages everyone to manage risks in a rational way, rather than blindly avoiding risks.

Is the stock price of the Bitcoin reserve company like a meme coin, just a flash in the pan?

Chain News has compiled the price movements of these publicly listed companies over the past month. Except for Where Food Comes From (WFCF), which had negative returns, and the veteran meme stock GameStop, which only rose by 8.66%. The other stocks all had astonishing increases ranging from 60% to 816%. It is evident that the stock prices of these companies are as volatile as newly launched meme coins, easily taking off.

GameStop (GME): 8.66%

DDC Enterprise (DDC): 317%

ATAI Life Sciences (ATAI): 60%

Kindly MD (KD​​LY): 816%

Coinsilium Group (COIN): 125%

Where Food Comes From (WFCF)：-9%

However, the author also reminds everyone that unless these companies can sustainably operate Bitcoin reserve businesses with the discipline of MicroStrategy and Metaplanet, most Bitcoin reserve companies are merely trying to attract attention based on their unprofitable core business. Once the news is released and the stock market hype fades, the stock price usually suffers a significant decline.

(Strategy leads the trend, a comprehensive explanation of the Bitcoin reserve strategy company investment guide)

This article discusses Bitcoin reserve companies by CZ: not taking risks is the biggest risk! First appeared in Chain News ABMedia.