Many crypto and Bitcoin treasury firms could face failure in 2026 as growing pressure exposes weaknesses in the business model, according to industry executives speaking to Cointelegraph.
Digital asset treasury (DAT) companies are entering a challenging period, with shares of several major players already down sharply. Altan Tutar, co-founder and CEO of crypto yield platform MoreMarkets, said the outlook for the sector is increasingly bleak as it heads into next year.
A surge in crypto treasury companies emerged in 2025, offering traditional investors an indirect way to gain exposure to cryptocurrencies. Early enthusiasm pushed share prices sharply higher as large inflows coincided with Bitcoin’s rally to record levels in October. However, the subsequent downturn in the broader crypto market has weighed heavily on valuations.
As competition intensifies, Tutar expects a significant shakeout. He warned that most Bitcoin treasury firms, along with many broader DAT structures, are unlikely to survive. In his view, treasuries focused on altcoins will be hit first, as they struggle to keep their market capitalisation above the value of their underlying crypto holdings — a key investor metric known as mNAV. Even treasuries tied to major digital assets could face similar pressure over time.
Tutar added that the firms most likely to endure are those that deliver value beyond simple asset accumulation. Companies offering products that generate consistent returns on their holdings and distribute those returns to stakeholders stand a better chance of surviving market downturns.
Yield strategies seen as key to survival
Ryan Chow, co-founder of Bitcoin platform Solv Protocol, noted that the number of companies holding Bitcoin on their balance sheets grew rapidly in 2025, rising from around 70 at the start of the year to more than 130 by mid-year. However, he cautioned that a Bitcoin treasury strategy alone does not guarantee sustained growth.
Chow said many firms are unlikely to survive the next major market correction. Those that do, he argued, will be companies that treat Bitcoin as part of a broader yield-focused strategy rather than a passive store of value. He pointed out that some of the strongest performers in 2025 used on-chain tools to generate sustainable yield or leveraged collateralised assets to maintain liquidity during market drawdowns.
By contrast, treasuries that relied on accumulation mainly as a marketing narrative — without a robust financial framework — have struggled and, in some cases, been forced to sell assets to cover operating costs. Chow stressed that the model must evolve toward structured financial management, with active and transparent deployment of digital capital.
Pressure from ETFs and traditional finance standards
Vincent Chok, CEO of stablecoin issuer First Digital, said successful Bitcoin treasury firms tend to follow disciplined allocation strategies, maintain sufficient liquidity, and treat Bitcoin as only one component of a wider financial plan.
Chok also highlighted growing competition from crypto exchange-traded funds, which many investors now prefer for regulated and straightforward price exposure. As ETF offerings expand — including products that incorporate staking returns — treasury companies are being pushed to adapt.
To remain competitive, Chok said crypto treasuries must align more closely with traditional finance standards, particularly in transparency, auditability, and regulatory compliance. He added that deeper integration with established financial infrastructure will be essential if the model is to meet institutional expectations and survive beyond 2026.
