Institutional Capital Shifts: Altcoin Treasuries Power New Crypto Era

Bitcoin has entered a consolidation phase, with market dynamics shifting toward alternative cryptocurrencies as institutional players increasingly focus on building treasuries in altcoins, according to Mike Novogratz, CEO of Galaxy Digital. Speaking on CNBC’s Squawk Box, Novogratz noted that Bitcoin's sideways movement is partly due to attention being drawn to altcoin strategies, particularly among firms managing blockchain-based assets.

One such firm, BitMine Immersion Technologies, has taken a leading role in altcoin treasury accumulation. The company recently added $200 million in Ether (ETH) to its holdings, bringing the total stockpile to over $9 billion in the asset. This trend reflects a broader shift in capital flows, as crypto-native companies like Galaxy Digital, Jump Crypto, and Multicoin Capital are actively deploying funds into altcoin ecosystems. Novogratz described these activities as injecting both energy and capital into the broader crypto market.

In a similar move, Forward Industries, a Nasdaq-listed design and manufacturing firm, announced $1.65 billion in cash and stablecoin commitments to establish a Solana (SOL)-focused crypto treasury. Novogratz emphasized that such initiatives are pivotal in expanding the financial infrastructure of the crypto space and moving beyond Bitcoin’s traditional role as a store of value.

Despite the current sideways trend, Novogratz anticipates a potential upswing for Bitcoin later in the year. He cited the U.S. Federal Reserve’s anticipated interest rate cutting cycle as a catalyst, alongside ongoing regulatory progress that supports blockchain adoption. For instance, Nasdaq recently filed with the SEC for a rule change to enable tokenized versions of listed stocks and ETFs, a move that could further integrate traditional and crypto financial systems.

Moreover, Novogratz highlighted the importance of regulatory clarity in accelerating blockchain adoption. He noted that the SEC’s efforts to modernize securities regulations, including remarks by Chair Gary Gensler, are helping to establish a more conducive environment for onchain market activity. These developments, he argued, address historical limitations such as speed, security, and trust, which have previously hindered blockchain’s expansion.

While competition among blockchains like Ethereum and Solana is expected to remain robust, Novogratz dismissed the notion of a single dominant chain taking over the market. He emphasized that Ethereum, for example, has a distinct community, narrative, and use case, and while it will compete with other blockchains, the likelihood of a single ecosystem dominating remains low. Instead, he predicted that the crypto market will transition from speculative narratives to more concrete financial activity as capital continues to flow into altcoin treasuries.