Bitcoin News Today: Crypto Treasury Growth Reaches Maturity as Expansion Phase Winds Down

Michael Novogratz, CEO of Galaxy Digital, has suggested that the surge in crypto treasuries—entities that hold digital assets on their balance sheets—may have reached a plateau. During Galaxy’s Q2 2025 earnings call, Novogratz remarked that the frenzied issuance of new treasury companies appears to be slowing, with the phase of rapid expansion likely over. “We’ve probably gone through peak treasury company issuance,” he stated, emphasizing that the market is now shifting from a race to enter the space to a focus on which firms will scale and dominate [1]. This signals a potential maturation of the sector and a transition from speculative growth to operational sustainability.

Over the past year, the rise of crypto treasuries in the U.S. has been fueled by regulatory changes that allowed firms to raise capital via IPOs and invest in digital assets. While Bitcoin was the primary asset of choice initially, newer entrants have increasingly diversified into Ethereum, Solana, and other tokens [2]. However, Novogratz pointed to the fact that major institutional players have already secured significant positions in Ethereum, including companies like BitMine and SharpLink, as a sign that the market is becoming more competitive and less open to new participants [3].

Galaxy Digital, which manages assets for over 20 such firms, has seen its platform grow by approximately $2 billion in crypto assets, generating stable income through management fees [4]. Despite this, the firm’s Q2 earnings were mixed. While it reported a net profit of $30.7 million, the earnings per share (EPS) figure fell short of forecasts [5]. This outcome reflects the broader challenges in the sector, including a slowdown in new entrants and increased competition among existing players.

Looking ahead, Novogratz sees exchange-traded funds (ETFs) and crypto treasuries as key bridges for traditional institutions and hedge funds entering the space. However, he acknowledged that the full tokenization of real-world assets remains a long-term objective. He also highlighted the role of the SEC’s ongoing “Project Crypto” in potentially accelerating blockchain adoption across traditional financial markets, though he stressed that significant work remains before traditional assets can be fully integrated into the digital ecosystem [6].

Novogratz’s comments are aligned with broader market trends. Galaxy recently executed a major Bitcoin transaction, selling 80,000 BTC for a client—a move he credited to the buying power of balance sheet companies such as Strategy and Trump Media and Technology Group [7]. These entities have played a critical role in stabilizing prices during large outflows, demonstrating the growing influence of institutional-grade crypto treasuries.

Despite the slowdown in new issuance, Novogratz noted that July was Galaxy’s best month on record for its digital assets business, and the firm executed one of the largest Bitcoin sales in history [8]. This suggests that while the pace of growth may be slowing, the sector remains active and continues to adapt to evolving market dynamics.

The CEO’s remarks underscore a broader shift in the crypto treasury landscape. While institutional demand for Bitcoin and Ethereum continues to provide support for digital asset prices, the initial wave of speculative treasury creation appears to be cooling. This indicates that the market is entering a more mature phase, where established firms will play a central role in shaping the future of digital asset valuation and adoption [9].

Source:

[1] https://coindoo.com/crypto-treasuries-may-have-hit-their-limit-says-galaxys-novogratz/

[2] https://cryptonews.com/news/michael-novogratz-signals-crypto-treasury-craze-likely-past-peak/

[3] https://ng.investing.com/news/cryptocurrency-news/bitcoin-treasury-companies-have-peaked-says-galaxys-novogratz-2044307

[4] https://decrypt.co/333592/strategy-trump-media-absorb-galaxys-9-billion-bitcoin-novogratz

[7] https://cryptonews.com.au/news/galaxy-ceo-says-treasury-growth-has-peaked-just-as-bitcoin-etfs-see-massive-outflows-130265/