The crypto treasury boom that surged in 2025 may be heading toward a sharp collapse in 2026, according to multiple industry executives. Many digital asset treasury (DAT) companies — especially those built around holding Bitcoin or altcoins — are struggling as falling crypto prices, crowded competition, and stronger alternatives like ETFs put pressure on their business models.
Shares of several high-profile crypto treasury firms have dropped significantly after an initial surge earlier in the year, when investors rushed in as Bitcoin climbed to new highs. Now, executives warn that only a small number of these companies will survive the next market cycle.
Why most crypto treasury companies may fail in 2026
Altan Tutar, co-founder and CEO of crypto yield platform MoreMarkets, says the outlook for DATs heading into 2026 is “bleak.” He believes most Bitcoin treasury companies — and nearly all altcoin-focused treasuries — will disappear as investors become more selective.
A key issue is the inability of many firms to maintain their market value above the value of their crypto holdings, a metric known as mNAV. According to Tutar, altcoin treasuries are especially vulnerable, with even large-asset treasuries tied to Ethereum, Solana, or XRP likely to follow if market conditions worsen.
Ryan Chow, co-founder of Solv Protocol, echoed this concern. He noted that the number of companies holding Bitcoin on their balance sheets nearly doubled in 2025, growing from about 70 to more than 130 in just months. However, Chow warned that simply holding Bitcoin is not a sustainable growth strategy.
Companies that treated crypto accumulation as a marketing gimmick — without proper risk management or liquidity planning — have already been forced to sell assets just to cover operating costs. As markets turn, Chow expects many of these firms to fail.
What successful crypto treasuries must do to survive
Executives agree that survival will depend on evolving beyond passive crypto holding. Treasury companies that performed best in 2025 were those that actively used on-chain tools to generate yield, accessed liquidity through collateralized assets, and managed crypto as productive digital capital rather than idle reserves.
Chow emphasized that future-proof treasuries must adopt structured financial management, using transparent, yield-generating systems instead of speculation. Tutar added that winning companies will be those offering real value to stakeholders by producing consistent returns on their holdings.
Vincent Chok, CEO of stablecoin issuer First Digital, pointed out another major challenge: competition from crypto ETFs. With regulated exchange-traded funds now offering price exposure — and even staking yields after regulatory changes — many investors prefer ETFs over corporate crypto treasuries.
To compete, Chok says crypto treasury companies must integrate with traditional finance infrastructure, meet institutional compliance standards, and treat Bitcoin as just one part of a diversified financial strategy. Without that evolution, ETFs are likely to absorb much of the demand that treasuries once relied on.
As 2026 approaches, the message from industry leaders is clear: the crypto treasury model is not dead, but most versions of it are. Only firms that combine disciplined allocation, yield generation, and TradFi-level professionalism are likely to survive the next downturn.
