New challenges for Bitcoin treasuries: when holding is not enough

UncleLiquidation · 2026-01-13T08:30:59+00:00

Mike Novogratz, head of Galaxy Digital, critiques the current Bitcoin treasury model, arguing simple asset accumulation no longer creates investor value. With nearly 40% of Bitcoin treasuries showing negative returns, companies must rethink strategies, potentially moving towards share buybacks and fintech services. This shift suggests a broader industry transformation as companies seek sustainable revenue beyond asset holding.

UncleLiquidation

2026-01-13 08:30:59

Abstract generation in progress

Mike Novogratz, the head of investment firm Galaxy Digital, has issued a sharp critical analysis of the current operating model of Bitcoin corporate treasuries. According to the executive, simply accumulating crypto assets no longer guarantees value creation for investors, and companies urgently need to rethink their business strategies.

Concerning Performance Statistics

The data shared by Novogratz during an interview with well-known financier Anthony Scaramucci paint a pessimistic picture. Nearly 40% of companies that position themselves as Bitcoin treasuries show negative returns, trading below the total value of their crypto portfolios. An even more troubling situation is observed in the segment where 60% or more of market participants acquired their positions at prices above current quotes.

Why the Traditional Model Has Run Out of Steam

The emergence of spot ETFs for Bitcoin and Ethereum has radically changed the competitive landscape. Investors now have direct access to cryptocurrencies without intermediaries, significantly reducing the appeal of structured treasury products. Mike Novogratz emphasizes that systemic issues faced by both Bitcoin treasuries and Ethereum-based structures reflect deep flaws in the very concept of their organization.

Potential Ways Out of the Crisis

Novogratz proposed several directions for companies in difficult financial situations. The first option is organizing share buybacks using discounts to the book value of assets. The second is developing proprietary fintech services, including creating next-generation digital banks that would integrate crypto assets into practical applications.

A Signal for the Entire Industry

Mike Novogratz’s position reflects an emerging shift in the mindset of major players in the crypto industry. Companies are beginning to see that simple asset holding no longer provides a sufficient competitive advantage and are actively seeking sustainable sources of income. This transition from a holding strategy to developing comprehensive product ecosystems could determine which structures remain relevant in the post-ETF era of market development.

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