Digital Asset Treasury Firms Face Shakeout in 2026

Industry executives warn that firms relying solely on holding digital assets—particularly altcoins—may struggle to survive the next downturn, while those without sustainable yield or liquidity strategies risk being forced sellers. To remain viable, treasury companies are expected to adopt more structured financial management, generate consistent returns, and align with certain traditional finance standards.

Crypto Treasury Companies May Not Survive 2026

Digital asset treasury (DAT) companies are heading into 2026 under more pressure, and industry executives warn that many of the firms that emerged during the recent crypto cycle may not survive the next market downturn. After a rapid expansion in 2025, when dozens of crypto-focused treasury companies launched to give public market investors exposure to digital assets, sentiment shifted sharply as falling token prices and investor scrutiny weighed on valuations.

Altan Tutar, co-founder and CEO of MoreMarkets, said in a recent interview that the outlook for DATs is bleak as the market becomes overcrowded. He argued that many crypto treasury firms are struggling to justify their market capitalization relative to the value of the assets they hold. 

Altan Tutar

According to Tutar, companies focused on altcoins are likely to be the first casualties, as they may find it difficult to maintain valuations above their net asset value. He also suggested that treasuries centered on major assets like Ethereum, Solana, and XRP could eventually face similar challenges unless they offer something beyond simple accumulation. In his view, only those companies that generate consistent returns from their holdings and share that value with stakeholders are likely to endure.

Similar concerns are shared by Ryan Chow, co-founder of Solv Protocol, who pointed out that the number of companies holding Bitcoin on their balance sheets surged from roughly 70 at the beginning of 2025 to more than 130 by midyear. Chow warned that simply holding Bitcoin is not a guaranteed growth strategy and predicted that many of these firms will fail during the next market downturn. 

He explained that the strongest performers have treated their crypto reserves as part of a broader yield and liquidity strategy by using on-chain tools to generate sustainable income or access capital during periods of stress. In contrast, companies that framed accumulation primarily as a marketing tactic have often been forced to sell assets to cover operating costs.

Vincent Chok, CEO of stablecoin issuer First Digital, believes that competition from crypto exchange-traded funds (ETFs) is intensifying the pressure on treasury companies. With ETFs offering regulated exposure and, in some cases, yield features, investors see them as a simpler and safer alternative. 

Vincent Chok

Chok argued that for DATs to remain relevant, they must evolve toward more traditional financial standards, including stronger governance, transparency, and integration with established financial infrastructure. Treating Bitcoin or other digital assets as just one component of a diversified and professionally managed financial plan, he said, will be essential if these companies hope to compete with ETFs and survive into the next cycle.