Most Crypto Treasury Firms Face Extinction by 2026: Execs
- Many crypto treasury firms may fail by 2026 due to weak valuations and market saturation.
- Companies without active yield or liquidity strategies are most at risk during downturns.
- ETFs are gaining momentum as solid competitors and urge treasuries toward standards at a level comparable to TradFi.
A growing number of crypto and Bitcoin treasury companies could disappear by 2026 as market pressures intensify and investors demand stronger fundamentals, industry executives told Cointelegraph.
Digital asset treasury (DAT) firms, which surged in popularity during the 2025 crypto rally, now face declining valuations amid a prolonged market downturn. These companies emerged to offer traditional investors indirect exposure to cryptocurrencies by holding large on-balance-sheet reserves. While the model initially attracted billions in capital, its weaknesses are becoming increasingly clear.
“Going into the next year, I think the outlook for DATs is looking a bit bleak,” said Altan Tutar, co-founder and CEO of crypto yield platform MoreMarkets. According to Tutar, the market has become overcrowded, and many firms will struggle to justify their valuations as prices remain under pressure.
“Most Bitcoin treasury companies will disappear with the rest of the DATs,” he said.
Tutar believes treasuries focused on altcoins will be the first to fail. These firms often struggle to maintain a market capitalisation above the value of their crypto holdings, a critical metric known as mNAV. Once that premium erodes, investor confidence typically follows.
“I suspect that the flagship DATs for large assets like Ethereum, Solana, and XRP will follow that way pretty quickly too,” Tutar added.
However, he noted that not all treasury firms are doomed. Companies offering more than passive accumulation, such as structured yield products or revenue-generating strategies, stand a better chance of surviving.
Yield strategies key to survival
Ryan Chow, co-founder of Bitcoin platform Solv Protocol, highlighted the rapid growth of the sector, noting that the number of companies holding Bitcoin rose from around 70 at the start of 2025 to more than 130 by mid-year.
“A Bitcoin treasury isn’t a one-stop solution to infinite dollar growth,” Chow said, adding that many firms are unlikely to survive the next market downturn.
As per Chow, the better-performing players in the year 2025 were the ones who utilized on-chain instruments for the generation of sustainable returns or used Bitcoin as collateral for accessing liquidity in conditions of drawdowns. On the other hand, the poorer players considered the accumulation of assets as a branding activity that lacked an efficient treasury system, compelling them to liquidate assets in order to meet operating expenses.
“The model needs to evolve from speculative to structured financial management,” Chow said.
ETFs reshape investor preferences
Vincent Chok, CEO of stablecoin issuer First Digital, said crypto exchange-traded funds are increasingly drawing investors away from treasury companies. ETFs offer regulated exposure, transparency, and, in some cases, yield all with fewer operational risks.
He asserted that for treasury firms to be competitive, they have to comply more with the traditional finance standards of compliance, auditability, and professional asset management.
“The model has to integrate with institutional-grade financial infrastructure,” he said, while signaling that firms focused purely on asset accumulation might struggle to justify their existence.
As crypto markets mature, executives agree that treasury companies must adapt quickly or risk becoming casualties of the next cycle.
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