Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Michael Novogratz indicates that the surge in the establishment of companies holding cryptocurrencies on their balance sheets may have already reached its zenith.
The founder and CEO of Galaxy Digital shared these insights on Tuesday during the firm’s earnings call for the second quarter.
“We’ve likely experienced the peak of treasury company issuance,” Novogratz stated. “The current question is which of the existing companies will evolve into giants.”
Favorable US Regulations Encourage Growth in Crypto Treasury Firms
Crypto treasury firms have gained traction in recent quarters, particularly as regulatory conditions in the US have become more accommodating. These companies raise funds in public markets and invest a portion or all of their reserves into digital assets such as Bitcoin, Ethereum, or other blockchain-based tokens.
An increasing number of public companies have embraced this strategy. This includes Strategy (previously MicroStrategy), GameStop, Trump Media & Technology Group, SharpLink Gaming, and Bit Digital. Their asset holdings encompass Bitcoin, Ethereum, Solana, and Litecoin.
Ethereum already boasts two significant corporate treasury holders, Tom Lee’s BitMine and Joe Lubin’s SharpLink. Novogratz anticipates that both will continue to grow but cautioned that new entrants may “struggle to find resources” as the market becomes more crowded.
Related Posts
Novogratz Anticipates Recurring Revenue From Treasury Partnerships
Galaxy Digital oversees crypto assets for over 20 treasury-focused companies. The firm generates fees for managing these assets, which currently amount to approximately $2 billion on its platform. Novogratz characterized this as “recurring income that will persist indefinitely.”
In May, Galaxy transitioned its public listing from the Toronto Stock Exchange to the Nasdaq Global Select Market. It now trades under the ticker symbol GLXY, representing a strategic effort to enhance its presence in the US market.
@galaxyhq has investigated the tokenization of its $GLXY shares and reported a 43% decline in total assets to $6.3 billion in Q2. #GLXY #Tokenizationhttps://t.co/2go2wQ7tLn
— Cryptonews.com (@cryptonews) August 5, 2025
The company also revealed in an SEC filing that it is considering the tokenization of its publicly traded shares. This initiative is part of Galaxy’s broader strategy to expand into blockchain-based financial infrastructure.
Established in 2018, Galaxy Digital provides a comprehensive array of crypto-focused services, including asset management, trading, investment banking, and infrastructure solutions. It aims to serve institutional clients seeking exposure to digital assets.
Novogratz indicated that the market’s focus is shifting away from the influx of new treasury participants. Instead, attention is turning to which existing firms will achieve significant growth in the upcoming phase of the cycle.
The post Michael Novogratz Signals Crypto Treasury Craze Likely Past Its Peak appeared first on Cryptonews.
