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Galaxy Digital CEO Michael Novogratz has cautioned that the crypto treasury trend, where firms and DAOs hoard digital assets like Bitcoin and Ethereum, is waning. Speaking at a Bloomberg event on August 5, 2025, Novogratz noted that the initial frenzy—driven by 2024’s bull market and firms like MicroStrategy holding $27 billion in Bitcoin—is cooling as organizations prioritize risk management and utility over speculative accumulation.
Crypto treasuries, once a hallmark of financial sovereignty, have faced scrutiny. DAOs like Uniswap, managing $1.2 billion in tokens, and companies like Tesla, with $765 million in Bitcoin, built massive reserves during 2021-2024. However, Novogratz highlights challenges: token price volatility, regulatory pressures, and demands for productive capital use. “Hoarding tokens isn’t enough,” he said. “Investors want real-world impact.”
Recent data supports this shift. Per CoinGecko, DAO treasury growth slowed in Q2 2025, with only 15% of top DAOs adding to reserves. Firms are now deploying funds into DeFi protocols, staking, and real-world asset tokenization, with $100 billion in tokenized RWAs by July 2025, per RWA.xyz. Regulatory clarity, like the SEC’s Project Crypto, is pushing treasuries toward transparency and diversified assets, including stablecoins and fiat.
This evolution could ease market buy pressure, as fewer entities amass large token positions, potentially stabilizing prices. Novogratz predicts a pivot to institutional-grade treasury management, blending crypto tools with traditional finance discipline. As crypto matures, treasuries are becoming strategic tools for growth, not just status symbols, signaling a pragmatic new era for the industry.
