Will 2026 Unwind Crypto Treasury Firms?

The outlook for digital asset treasury companies (DATCOs) is starting to look bleak as we enter into 2026. Shares of several of the biggest Treasury companies have fallen significantly in recent months.

In 2025, a significant rise in crypto treasury firms provided Wall Street investors with an additional pathway to engage with crypto.

The share prices of companies surged initially as major investors injected billions during Bitcoin's peak in October, but a subsequent downturn in the crypto market has negatively impacted their valuations.

As the market becomes more concentrated, experts anticipate a significant reduction in the number of participants.

The companies in the crypto space that are poised for success are those that deliver extra value beyond just their substantial reserves. This includes offering products that yield strong, reliable returns on their assets and share those benefits with their stakeholders.

The count of firms acquiring and retaining Bitcoin as Treasury increased from 70 at the beginning of 2025 to more than 130 by mid-year.

Data from BitcoinTreasuries.net indicates that the total count of public companies, governments, and institutions that have invested in Bitcoin has reached 145, with their combined holdings surpassing 1.5 million BTC, valued at approximately $140 billion.

The most successful crypto treasury firms in 2025 were those that used on-chain technologies to generate long-term profits or those that used collateralized assets to protect themselves from market slumps.

ETFs are emerging as significant contenders for crypto treasury firms, with asset managers introducing products that incorporate staking returns following the easing of regulations by US authorities regarding yield offerings.

Trend: Sell Tokens to Pay Debt

ETHZilla Corp (Nasdaq: ETHZ), a crypto Treasury firm backed by billionaire Peter Thiel, seems to be changing its strategy as investors move away from Wall Street's most sought-after trades.

ETHZilla sold $74.5 million worth of Ether tokens to pay off its debts, according to a US SEC filing. The group plans to continue exploring various options to raise funds, including selling Ether and conducting equity offerings, in order to achieve its business goals.

On December 19, ETHZilla had 69,800 tokens in circulation, which, at the current market price, were worth almost $210 million.

Michael Saylor's playbook of turning Strategy (Nasdaq: MSTR) into a publicly listed Bitcoin holding vehicle was something ETHZilla was trying to emulate.

Even Bitcoin-loving Saylor at one point said selling tokens would be an option on the table as Bitcoin fell over 30% from its peak of above $126,000. But he soon reversed his position and came up with other plans, including buying more Bitcoin.

Professionals at Grayscale predict the beginning of a new phase for institutions, anticipating that a greater variety of crypto assets will be accessible via ETFs, which will heighten the competition for DAT.

During an economic downturn, according to IG predictions, Bitcoin may enter a "tight market" characterized by enhanced liquidity, yet it faces the potential threat of bearish selling pressure.

Data indicates that this year has seen a 43% drop in the median stock price of US and Canadian companies that become DATs.

Bitcoin, on the other hand, has fallen a touch over 6% since the beginning of the year.

The bulk of DATCOs have let down investors who bought them when they were at their peak, a lucky few have maintained value beyond their underlying assets.

As things stand, predictions indicate that 70% will most likely end the year with less than they started with.

It's important to consider the potential risks associated with debt obligations: companies currently possess 6.2% of the overall BTC supply, reflecting a remarkable 21-fold increase since 2020, frequently achieved through various debt strategies.

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Decentralization and Privacy: Insights from TEN Protocol's Cais Manai

In this episode of Blockcast, host Takatoshi Shibayama sits down with Cais Manai, co-founder of TEN Protocol, to delve into the intricacies of blockchain privacy and decentralization. Cais shares his journey from discovering Bitcoin in 2012 to co-founding TEN Protocol, a project focused on integrating privacy into Ethereum's Layer 2 solutions.

Tune in at blockcast.blockhead.co or on Spotify, Apple, Amazon Music, or any major podcast platform.

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