Crypto Treasuries Face Extinction as Executives Warn of 2026 Market Collapse

Crypto Treasuries Face Extinction as Executives Warn of 2026 Market Collapse

Over 130 Bitcoin treasury firms emerged in 2025, but experts warn many will fail by 2026 due to market pressures and unsustainable valuation models. How will this impact investors?

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Industry executives have warned that many digital asset treasury (DAT) companies could face significant challenges as they approach 2026. The co-founder and CEO of MoreMarkets, Altan Tutar, highlighted a concerning trend, predicting a drastic reduction in the number of crypto treasury firms. This comes as share prices for several of these companies have dropped sharply due to a broader market decline.

In 2025, a surge of new crypto treasury companies emerged, catering to Wall Street investors looking to access cryptocurrencies. Initial excitement led to rapid increases in share prices, particularly as Bitcoin reached peak values in October. However, Tutar indicated that the market's saturation would likely lead to many firms failing, especially those focused on altcoins that cannot maintain market values above their crypto holdings.

Ryan Chow, co-founder of Solv Protocol, noted that the number of companies holding Bitcoin jumped from 70 to over 130 within the first half of 2025. He emphasized that success in the current environment will depend on companies adopting comprehensive yield strategies rather than solely relying on Bitcoin as a store of value.

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