As more public and private companies allocate part of their corporate treasury to Bitcoin, the conversation has shifted from “Is this allowed?” to “Are we protected?”
High-profile moves—such as those by MicroStrategy, Tesla, and Asia’s own Genius Group—have made Bitcoin holdings a corporate strategy rather than a fringe experiment. Yet, with this strategic shift comes a new risk calculus, especially for the boardroom.
Bitcoin may be borderless. But liability is not.
The Volatility That Doesn’t Stay on the Chart
Bitcoin’s price swings are legendary. A double-digit drawdown can occur within hours—and so can a rapid rally. For companies holding BTC as a treasury asset, that volatility can create a material impact on financial statements and shareholder value.
If board decisions around Bitcoin exposure aren’t adequately justified or disclosed, directors may be exposed to claims of:
Breach of fiduciary duty
Negligence in risk oversight
Failure to maintain prudent reserve diversification
Shareholders may allege that the company’s Bitcoin exposure was speculative, inadequately disclosed, or misaligned with their risk appetite.
Disclosure and Governance Pressures Are Rising
Regulators are paying attention. In the U.S., the SEC has asked companies to provide detailed disclosures on digital asset holdings and related accounting treatment. In Asia, public market regulators are also beginning to tighten scrutiny.
Without a well-documented governance framework, companies risk running afoul of:
Inadequate or misleading disclosures
Lack of board-level risk assessment
Insufficient internal controls around custody and trading
Boards are increasingly expected to demonstrate that BTC allocations are supported by robust decision-making processes—not just personal conviction.
The Role of D&O Insurance in Bitcoin Treasury Strategies
Directors & Officers (D&O) insurance is designed to protect decision-makers from personal liability arising from their roles. In the context of Bitcoin treasuries, this protection becomes more important than ever.
How D&O insurance becomes relevant:
Exposure | Risk | D&O Response |
|---|---|---|
Sudden BTC drawdown | Shareholder litigation | Defense and settlement costs |
Poor disclosure | Regulatory investigation | Coverage for legal counsel |
Custody mismanagement | Dereliction of duty claims | Personal asset protection for directors |
A well-structured D&O policy ensures that governance innovation doesn’t become a personal liability. For boards exploring BTC, it’s not enough to think about market upside—downside protection must also be in place.
Even if you have an existing D&O policy it may have been structured around your existing business and have exclusions in relation to your new Bitcoin Treasury Strategy
Continuum’s Approach
At Continuum, we advise high-growth and innovation-forward firms in Asia on how to align treasury strategies with smart governance and risk protection. Our D&O solutions are designed to:
Cover liability risks from BTC and other digital asset exposures
Address evolving regulatory expectations around disclosure
Offer modular protection that scales with your treasury strategy
Whether you’re a founder-led firm making your first BTC purchase or a listed company managing shareholder scrutiny, we help ensure your risk transfer strategy evolves with your ambition.
Closing Thoughts
Holding Bitcoin on your balance sheet is no longer just a tech flex. It’s a financial and governance decision with real-world liability implications. As shareholder expectations and regulatory standards evolve, so must boardroom protections.
If your company is exploring—or already holding—Bitcoin, D&O insurance isn’t optional. It’s foundational.
Let’s talk strategy.
