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Crypto Treasuries Adapt Strategies to Capitalize on Volatility
11 Nov
Summary
- Crypto companies holding digital assets on their balance sheets face challenges as prices decline
- Crypto treasuries have unique tools to generate yield, like lending and term agreements
- Experts predict the crypto treasury space will evolve, with some firms trading below book value
As of November 11th, 2025, the crypto market has seen a significant downturn, and companies that have been holding various cryptocurrencies on their balance sheets are now facing challenges. Experts have been closely monitoring this phenomenon, known as "crypto treasuries," and they believe that these companies have a unique opportunity to add value for investors.
Digital asset treasuries can leverage tools that traditional asset management vehicles cannot, such as lending, bilateral agreements, and term agreements. This allows them to find ways to generate yield and manage their portfolios more actively. However, these strategies may also cause certain digital asset treasuries (DATs) to trade above their book value, only to fall below it when liquidity dries up.
Over time, the experts predict that the crypto treasury space will mature, and investors will start to see real skills and fundamentals attached to certain DATs, rather than just a "religious following." The ones that trade below net asset value (NAV) will do so like closed-end funds, which is a recognized market. Interestingly, a significant amount of crypto is currently being held by these digital asset treasuries, as well as by ETFs and governments.
The experts believe that the crypto treasury space is not going to disappear and are excited to see what the future holds for this evolving financial landscape.
