Risk Translation: How Cryptocurrency Impacts Company Risk, Beta and Returns

Document Type



cryptocurrency; corporate disclosure; Bitcoin; corporate treasury; risk management

Identifier Data



Emerald Publishing Limited

Rights Management

Copyright © 2023, Jack Field and A. Can Inci


As cryptocurrencies continue to gain viability as an asset class, institutional investors and publicly traded firms have started taking investment positions in digital currencies. What firms may not be considering, however, is the effect these assets may have on their risk profiles. This study aims to (1) measure the effect of cryptocurrencies on the risk and return characteristics of publicly traded companies; (2) decipher the motives behind holding cryptocurrencies as an asset class; and (3) determine whether one reason for holding is more effective than another. To conduct this research, the four largest publicly traded holders of cryptocurrency as well as four of the most prominent cryptocurrencies are explored.