Coinbase Research Head Predicts Consolidation of Crypto Treasury Companies

David Duong, Head of Investment Research at Coinbase, suggests that as the market cycle progresses, companies may engage in merger and acquisition deals to attract investors. He expects Digital Asset Treasury companies to be consolidated under a few large institutions, citing the recent collaboration between Strive and Semler Scientific as an example.

As the market cycle progresses, companies in the digital asset treasury sector are increasingly engaging in merger and acquisition (M&A) deals to attract investors and enhance their market presence. David Duong, Head of Investment Research at Coinbase, has suggested that this trend is likely to continue, with larger institutions consolidating smaller digital asset treasury companies under their umbrella. Duong cited the recent collaboration between Strive and Semler Scientific as an example of this consolidation trend VivoPower International PLC Secures $19 Million in Equity Raising to Enhance Digital Asset Treasury Strategy^[1].

VivoPower International PLC, a sustainability-driven enterprise, has recently raised $19 million through an equity offering, which will be used to scale up its digital asset treasury strategy and retire debt Sui digital asset treasury company plans to launch two stablecoins: report^[2]. This move is indicative of the growing importance of digital asset treasury strategies in the financial landscape.

Another notable development in the digital asset treasury sector is Sui Group's plan to launch two stablecoins on the Layer 1 blockchain. Sui Group, a Nasdaq-listed company, has partnered with stablecoin startup Ethena to issue suiUSDe and USDi stablecoins, which are expected to go live by the end of this year . This move further underscores the growing interest in stablecoins and their potential role in digital asset treasury strategies.

The consolidation trend in the digital asset treasury sector is likely to be driven by several factors. Firstly, larger institutions may seek to acquire smaller companies to gain access to new technologies and talent. Secondly, M&A deals can provide a pathway for companies to achieve economies of scale, reduce operational costs, and enhance their competitive position. Finally, the recent success of digital asset treasury companies like VivoPower and Sui Group has attracted the attention of investors, who are now looking for opportunities to invest in this rapidly growing sector.

In conclusion, the digital asset treasury sector is witnessing a wave of consolidation through M&A deals, driven by the desire to attract investors, enhance market presence, and achieve economies of scale. As the market cycle progresses, we can expect to see more such deals, with larger institutions acquiring smaller companies to strengthen their position in this rapidly evolving financial landscape.