According to Galaxy Research, companies referred to as Digital Asset Treasury Companies (DATCOs) now own cryptocurrency valued over $100 billion, reflecting a shift in corporate strategy regarding digital assets.
Growing Number of Digital Asset Treasuries
There are companies that now control nearly 792,000 BTC (about $93 billion) and 1.31 million ETH (approximately $4 billion). This showcases a breakthrough in treating cryptocurrencies as balance sheet assets.
Strategies of Companies with Digital Assets
Some firms view cryptocurrencies as a reserve asset alongside cash or gold. Others choose to stake Ethereum to earn yields from idle assets. There are businesses actively raising new capital specifically for purchasing digital assets, involving market offerings or SPAC mergers.
Market and Regulatory Oversight
Most DATCOs are based in the U.S. due to easier access to capital markets, but this model is starting to spread internationally. This results in enhanced liquidity in the crypto market; however, it can also tie company valuations closely to token price fluctuations, emphasizing growing volatility in stocks.
The financial metrics of companies holding digital assets, alongside possible regulatory changes, may significantly impact the management and protection of cryptocurrency investments.
