Princeton Mafia: A Circle of Crypto Power Players Shaping the Digital-Asset Treasury Boom

A group of prominent crypto investors, including Mike Novogratz, Dan Morehead, and Ethereum co-founder Joseph Lubin, have formed a tight circle that's driving the digital-asset treasury boom. These investors, all Princeton alumni, have raised billions for public companies using Wall Street tactics to stockpile crypto and raise capital. Their gamble is facing challenges, but their influence continues to shape the crypto market.

A group of prominent crypto investors, including Mike Novogratz, Dan Morehead, and Ethereum co-founder Joseph Lubin, have formed a tight circle that's driving the digital-asset treasury (DAT) boom. These investors, all Princeton alumni, have raised billions for public companies using Wall Street tactics to stockpile crypto and raise capital. Their gamble is facing challenges, but their influence continues to shape the crypto market.

The DAT boom, valued at around $700 billion, is reshaping private markets and requires sharper due diligence to evaluate these structures Diligence in the Job Search^[1]. These investors, known as the "Princeton mafia," have been instrumental in this growth. Novogratz, the founder of Galaxy Digital, and Morehead, the CEO of Pantera Capital, along with Lubin, a co-founder of Ethereum, have been central figures in the crypto dealmaking landscape.

Their tight-knit network has been a common thread in many DAT deals, with around a third of all DAT deals involving the same small group of boutique investment banks. The top 10 DAT investors have been involved in about 14% of treasury deals in the past six months, per PitchBook Inside the Princeton Network Fueling a Crypto Treasury Boom^[2]. This circle of influence extends to dealmakers, with Novogratz and Lubin often collaborating on projects, such as SharpLink Gaming, a treasury company holding Ether.

The DAT strategy involves using Wall Street tactics to raise capital and stockpile crypto, repeating the process to generate returns. This approach has been successful, with DATs drawing a record $15.4 billion in fresh capital this year Inside the Princeton Network Fueling a Crypto Treasury Boom^[2]. However, the volatility inherent in high-wire crypto pursuits has led to significant drops in share prices, as seen with Lubin-backed SharpLink and BitMine.

Despite these challenges, the Princeton trio remains optimistic about the future of DATs. Morehead, for instance, predicts that bitcoin will double in value within a year, trading beyond $230,000 and eventually reaching $1 million This Crypto Investor Expects Bitcoin to Double in the Next ...^[3]. Their influence on the crypto market is undeniable, with their firms often acting as service providers, staking coins, designing DeFi strategies, and advising teams.

While the DAT boom faces uncertainties, the involvement of these prominent investors suggests a long-term commitment to the crypto market. Their shared history and connections have shaped decades of crypto dealmaking, and their influence is likely to continue shaping the future of digital assets.