Online reports, According to The Block, analysts in the Franklin Templeton digital assets division warned that despite the corporate crypto treasury boom bringing some upside, the "risk of a negative feedback loop" poses a particularly dangerous situation. More and more listed companies are adopting the crypto treasury model: raising funds through financing instruments such as stocks, convertible notes, and preferred stocks to purchase and hold crypto assets such as Bitcoin, Ethereum, and Solana, and incorporate them into the balance sheet. Several companies have raised billions of dollars through a variety of financing instruments with different risk-return characteristics. Analysts added that the rise in cryptocurrency prices could also increase the company's market value, creating a positive feedback loop and attracting more investors. However, Franklin Templeton warned that this model also carries significant risks. If the ratio of market value to net asset value (NAV) is less than 1, newly issued shares will have a diluting effect, and it may be difficult for the company to raise capital without harming the interests of existing shareholders, thereby hindering capital formation and breaking the original virtuous cycle. To make matters worse, falling cryptocurrency prices can trigger a negative feedback loop. Companies may be forced to sell assets to support stock prices, which will further depress cryptocurrency prices and investor confidence, ultimately creating a self-reinforcing downward spiral. The corporate crypto treasury model represents a new stage in institutional adoption of cryptocurrencies, but it is not without risks. Maintaining market value above net assets, continuing to engage in value-added transactions and effectively responding to market fluctuations will be the key to the long-term success of these companies.