Crypto Treasury Firms Raise $79bn in 2025, Testing Investor Appetite Amid Fragile Market

Crypto treasury firms have unveiled $79 billion in planned funding in 2025, with $31 billion in announced deals and $18 billion actually raised. While conditions are ideal, valuations are stretched and the structure is momentum-driven. A pile-up of convertible debt coming due in 2027-28 and a potential drop in Bitcoin prices could cause stock prices to trade below net asset value, choking off fundraising and raising default risks.

Crypto treasury firms have secured $79 billion in planned funding in 2025, with $31 billion in announced deals and $18 billion actually raised. This surge in funding reflects a growing institutional interest in digital assets, particularly Bitcoin. According to crypto advisory firm Architect Partners, the funding is primarily focused on Bitcoin, with the total amount surpassing global IPO volume for the year [2].

Despite the robust funding, the market remains fragile. Valuations for these firms are stretched, with an average premium of 73% over the value of their Bitcoin holdings. This premium allows them to raise capital cheaply, but it is momentum-driven and could evaporate quickly if market conditions change [2].

A significant risk lies in the pile-up of convertible debt coming due in 2027-28. If Bitcoin prices drop by 20% by the end of the year, as Keyrock's bear case suggests, stock prices could fall below net asset value, choking off fundraising and raising default risks. This scenario underscores the inherent fragility of the financing model [2].

While the capital is still flowing, the crypto market's volatility means calm conditions may not last. Investors are racing to lock in capital before the window closes. The hope is that broader conditions hold up, but the market's inherent volatility and the structure of these firms' financing models present significant risks [2].

References:

[1] https://cointelegraph.com/news/crypto-treasury-firms-100b-eth-treasuries-4b
[2] https://www.bloomberg.com/news/newsletters/2025-07-31/digital-asset-treasury-companies-are-booming-in-a-fragile-market
[3] https://decrypt.co/332825/goat-network-bets-on-fast-zk-proofs-to-capture-bitcoin-layer-2-yield