Bitcoin News Today: Galaxy CEO says crypto treasury frenzy may peak as focus shifts to sustainability and scale

Galaxy Digital CEO Michael Novogratz has suggested that the recent surge in companies allocating cryptocurrencies like Bitcoin (BTC/USD), Ethereum (BTC/USD), and Solana to their corporate treasuries may be reaching a plateau. During Galaxy Digital’s second-quarter earnings call, Novogratz indicated that the initial wave of new entrants into the space may have already peaked, with attention now shifting to which existing firms can scale and dominate in the long term [1].

Treasury companies, which raise capital and hold crypto assets, have gained traction in a more accommodating U.S. regulatory climate. Initially inspired by the Bitcoin-centric strategy of Michael Saylor’s MicroStrategy, newer firms are now adopting a broader approach to crypto holdings. Novogratz highlighted Ethereum-focused firms such as BitMine and SharpLink as examples of companies with potential longevity, led by figures like Tom Lee and Joe Lubin [1].

The Galaxy Digital CEO also warned that newer projects may struggle to gain momentum as competition for capital and market visibility becomes more intense. Galaxy Digital currently manages digital assets for over 20 crypto treasury firms, generating a stable flow of management fees. These partnerships have brought approximately $2 billion in assets under the Galaxy umbrella, contributing to what Novogratz described as a reliable recurring revenue stream [1].

The comments were made alongside Galaxy Digital’s second-quarter profit of $30.7 million, a significant improvement from the $177 million loss recorded in the same period last year. However, earnings per share came in at $0.08, below analyst expectations, primarily due to reduced trading volumes in spot markets. As a result, the company’s stock fell 7% midday in New York [1].

Novogratz sees crypto treasury vehicles and ETFs as accessible, low-risk entry points for hedge funds that remain hesitant to hold digital assets directly. He also anticipates that traditional financial institutions will eventually adopt blockchain-based infrastructure, although challenges remain—particularly in asset tokenization, where traditional securities are moved onto blockchain platforms [1].

He referenced the U.S. Securities and Exchange Commission’s "Project Crypto," led by Paul Atkins, as a key initiative exploring the transition of U.S. markets to blockchain technology. Despite this, unresolved questions around liquidity and market structure for tokenized assets continue to present obstacles [1].

Novogratz’s remarks underscore a shift in the crypto treasury landscape from rapid expansion to a more strategic focus on sustainability and scale. As the sector matures, the ability of firms to differentiate themselves and manage capital efficiently will become increasingly critical.

Source: [1] Michael Novogratz Says Bitcoin, Ethereum Treasury Frenzy May Be Over — What Now? (https://www.benzinga.com/crypto/cryptocurrency/25/08/46867915/michael-novogratz-says-bitcoin-ethereum-treasury-frenzy-may-be-over-what-now?utm_source=coingecko&utm_campaign=partner_feed&utm_medium=partner_feed&utm_content=site)