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Coinbase: Only a Few Digital Asset Treasuries Will Survive the Next Cycle
Coinbase – As the digital asset treasury (DAT) landscape enters a more mature phase, Coinbase’s head of investment research, David Duong, predicts a wave of consolidation driven by market pressures and investor competition.
Mergers, Buybacks, and Financial Engineering
Speaking to Cointelegraph, Duong explained that DATs are beginning to resemble traditional corporate treasuries, using tactics like mergers and acquisitions to gain market share. He pointed to the recent Strive–Semler Scientific all-stock deal as an early sign of this shift.
Outside of M&A, DAT firms are turning to more crypto-native strategies, including staking and DeFi looping, to generate yield and stay competitive. However, Duong warned that long-term success will depend on regulatory clarity, liquidity conditions, and broader market sentiment.
The Battle to Dominate Individual Tokens
Duong, along with Coinbase researcher Colin Basco, noted in a recent report that the DAT market has entered a “player-vs-player” phase. Companies are now battling to become the dominant treasury for specific tokens, such as Bitcoin, Ethereum, or Solana.
This has sparked a surge in share buybacks, with firms aiming to bolster stock prices and stand out. Thumzup, a Trump Jr.-linked media firm, increased its buyback plan tenfold to $10 million, while DeFi Development Corp raised its repurchase target from $1 million to $100 million.
But Duong cautioned that buybacks don’t guarantee success. “The effectiveness hinges on investors’ perception of a company’s fundamentals,” he said, adding that poorly timed or defensive buybacks can signal weakness, as seen with TON Strategy Company, whose shares fell 7.5% after a repurchase announcement.
Massive Holdings, Growing Risks
DATs have quietly become major holders of digital assets. Collectively, they now own over 1.4 million Bitcoin—worth more than $166 billion—and 5.49 million Ether, valued at $24 billion. Additionally, Solana treasuries hold more than 13.4 million SOL tokens, totaling over $3 billion.
With the market becoming increasingly competitive and saturated, Duong expects that only a few dominant players will survive—those who can scale, innovate, and adapt.
