Are there too many crypto treasury companies?
- How many crypto treasury companies (DATs) can there be? According to Coinbase research chief David Duong, fewer than expected. As the cycle matures and competition increases, smaller DATs could merge or be acquired by larger ones, Duong told Cointelegraph.
- “Companies may begin to pursue mergers and acquisitions, similar to what recently happened with Strive and Semler Scientific, as we approach the more mature phase of the DAT cycle.”
- The merger of Strive Asset Management and Semler Scientific was already a harbinger of this trend. The goal: economies of scale and a stronger positioning vis-à-vis investors.
- According to Duong, DATs are increasingly trying to differentiate themselves from the competition through financial engineering strategies such as share buybacks and the issuance of new capital market instruments. For example, the Solana Treasury DeFi Development Corp increased its buyback program from $1 million to $100 million.
- At the same time, DATs are staking their holdings or using DeFi strategies like looping to generate additional returns. But this approach is risky – and not always sustainable. According to Standard Chartered, many DATs will not survive this competition.
- The fact that more than 1.4 million Bitcoins are now in corporate hands speaks to the relevance of DATs. However, the price performance of some DAT stocks shows that not all strategies convince investors. Even the world's largest Bitcoin treasury, Strategy, has been losing ground against Bitcoin since the beginning of the year. Duong is certain: In the long run, only a few major players will remain.
- In addition to Bitcoin, Ethereum, and other cryptocurrencies, you can also invest in stocks like Strategy (MSTR) at Bitpanda. This allows you to build a diversified portfolio with Bitpanda.
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Sources
- Cointelegraph
Eine Quelle: btc-echo.de
