What’s Happening with Crypto Treasuries? An Overview of TradFi’s Latest Strategy

The era in which digital currency was exclusively the realm of retail investors is over. With the emergence of crypto treasuries, institutions are actively observing the sector. More and more publicly listed firms in the United States, Europe, and Japan are delving into cryptocurrencies such as BTC, Ethereum, and Solana, integrating them into their financial statements.

Digital Asset Treasury Companies (DATCOs) are transforming how conventional investors, particularly those with a preference for equities, access the rapidly evolving crypto markets. As of mid-August 2025, the overall trading market valuation exceeded $4 trillion. Furthermore, this number is anticipated to increase as Wall Street and governmental bodies adopt the industry. In the U.S., the aim is to implement regulations for crypto, and the passing of the GENIUS Act into law in July represented a significant step towards this aim.

However, as crypto asset gains traction and publicly traded companies begin to adopt some of the top cryptocurrencies to invest in, is the viability of crypto treasuries assured? What potential risks should be taken into account? Will the sector advance linearly towards tremendous success?

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The Emergence of Crypto Treasuries

When Michael Saylor of MicroStrategy, now known as Strategy, started purchasing BTC in 2020, he faced substantial criticism. BTC was facing difficulties, and the COVID pandemic was wreaking havoc on global financial systems.

Ultimately, by acquiring BTC ▲1.27% through leveraging debt, MicroStrategy became a proxy for traditional finance (TradFi) investors looking for indirect crypto exposure.

As Bitcoin USD and other crypto values surged in 2021, peaking at $69,000, MSTR’s stock price closely followed BTC, establishing itself as one of the standout stocks.

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Since that time, the concept has exploded in popularity. A recent report from Galaxy Digital indicated that DATCOs collectively manage over $100 billion in crypto asset assets. The majority of public companies favor BTC and Ethereum, rather than even new potential 1000X cryptos.

Per Galaxy Digital, publicly listed companies, spearheaded by MicroStrategy, hodl nearly 800,000 Bitcoin, while firms investing in ETH maintain over 1.3 million Ethereum. Companies that accept higher risk have exposure to SOL ▲14.81%, Bittensor, BNB, and even Hyperliquid.

The attraction of DATCOs lies in their capacity to provide investors with cryptocurrency exposure without the necessity of directly holding high-risk assets.

As noted by Pantera, a crypto venture capital firm, in a letter, DATCOs can yield returns that enhance net asset value per share. DATCOs enable investors to acquire a greater portion of the original token over time compared to maintaining spot crypto assets.

This edge is especially relevant for public corporations holding tokens from proof-of-stake blockchains such as Solana and BNB, which provide annual staking yields. In contrast to non-yielding spot crypto ETFs like BTC, possessing shares of a publicly traded company with crypto involvement leads to superior returns.

Illustrative Examples: Pantera, World Liberty Financial

Recognizing this advantage, Pantera has invested more than $300 million in public firms that include crypto in their financial reports.

These investments feature SharpLink Gaming, which has aggressively amassed ETH, Decentralized finance Development Corp, and BitMine Immersion. BitMine Immersion manages 1.15 million Ethereum, positioning it as the largest ETH treasury globally. Concurrently, Decentralized finance Development Corp is significantly invested in Solana, holding 1.3 million SOL and securing $165 million in funding in July 2025 to acquire additional SOL.

World Liberty Financial, owned by the Trump family, intends to raise $1.5 billion to repurchase its coin, WLFI, through ALT5 Sigma. By buying back tokens, World Liberty Financial is emulating MicroStrategy’s approach, leveraging a public firm to democratize crypto participation.

Additionally, another company linked to Trump, Trump Media & Technology Group, is changing its strategy, integrating $2 billion in BTC into its financial structure.

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Are Crypto Treasuries Viable for the Long Term?

Despite their allure, can crypto treasuries remain viable for the long term? Is the DATCO model sufficiently resilient to endure the inherent price swings of crypto?

Public companies incorporating cryptocurrencies like ETH, SOL, and BNB into their financial summaries can reap staking benefits, yielding higher returns through non-dilutive earnings. DATCOs also provide traditional investors with indirect access to cryptocurrencies through well-known equity markets across diverse regions.

By incorporating crypto, enterprises can diversify, lessening the chance of risk if their stock prices decline.

Nonetheless, DATCOs tend to trade at a premium, and Galaxy Digital cautions that a drop in this premium could lead to significant losses, particularly for companies utilizing debt to acquire crypto.

Moreover, risks still persist. Changing regulations might limit DATCOs’ capacity to function or raise funds effectively. High crypto market market fluctuation could deplete treasury valuations, affecting stock prices and shaking investor trust. Decreasing prices may also hinder firms from securing capital to purchase crypto unless backers have solid belief in the crypto asset.

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