The surge in companies created to hold crypto assets has probably reached its peak. Galaxy Digital CEO Mike Novogratz warned that future success will depend on strategic positioning rather than simple asset accumulation.
Peak Treasury Issuance Behind Us
Speaking on Galaxy’s Q2 earnings call Tuesday, Novogratz said the proliferation of crypto treasury companies has likely peaked. “We’ve probably gone through peak treasury company issuance,” he stated. “The question now is which of the existing companies will become monsters.”
Ethereum already has two major treasury holders—Tom Lee’s BitMine and Joe Lubin’s SharpLink—both expected to keep growing. New entrants may “have a harder time getting oxygen,” Novogratz warned.
Galaxy Digital collaborates with over 20 crypto treasury firms, earning management fees for overseeing their digital asset holdings. These partnerships have added roughly $2 billion in assets to Galaxy’s platform, generating what Novogratz called “recurring income that will go on and on.”
The rise of US crypto treasury firms has benefited from improved regulatory conditions. Early adopters followed MicroStrategy’s Bitcoin-heavy approach, while newer entrants have diversified into Ethereum, Solana, and other tokens.
Galaxy recently executed what Novogratz called “a 9-plus-billion-dollar trade” that he believes was “the largest or one of the largest Bitcoin trades in history.” The successful execution demonstrated strong market confidence in Galaxy’s brand and services. July marked Galaxy’s best month on record across all business lines.
Galaxy reported Q2 net income of $30.7 million, recovering from a $177 million loss the previous year. However, shares fell 7% Tuesday as the company missed earnings estimates amid declining spot trading activity.
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