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Omid Malekan: Digital Asset Treasuries Impact Crypto Market
Discussions on Bitcoin’s recent price drop must consider the role of crypto treasury companies, according to blockchain author and Columbia Business School adjunct professor Omid Malekan. He argues that these firms have significantly contributed to downward pressure in the crypto market.
“Any analysis of why crypto prices continue to fall needs to include DATs [digital asset treasuries],”
Malekan said in an X post on Tuesday.
“In aggregate they turned out to be a mass extraction and exit event — a reason for prices to go down.”
Companies in It for the Wrong Reasons
Malekan emphasizes that while a few treasury companies attempt to create sustainable value, most are primarily motivated by short-term gains. Many firms raised millions from investors eager for crypto exposure, but some founders reportedly treated crypto treasury companies as get-rich-quick schemes.
“Launching any kind of public entity is expensive,”
he added. “The money required for the shell/PIPE/SPAC runs into the millions. As do the fees paid to all the bankers and lawyers involved. The money spent on those fees had to come from somewhere.”
These firms have been acquiring large quantities of tokens from major cryptocurrencies, often using leverage through share sales, convertible notes, and debt offerings. Such practices raise concerns that leveraged entities could amplify market downturns by being forced to sell assets in a crisis.
Leveraging Holdings for Yield and Growth
Some crypto treasury companies attempt to attract investors by generating yield through staking or by deploying parts of their holdings into lending and liquidity provision protocols. Yet, Malekan warns that these strategies have not prevented significant market disruption.
“The biggest damage DATs did to aggregate crypto market cap was by providing a mass exit event for supposedly locked tokens,”
he claimed. “I’m still amazed so many other investors didn’t cry foul over this.”
He further noted,
“Raising too much money and minting too many tokens even if they are locked or for ecosystem growth is the gangrene of crypto.”
Explosive Growth of Crypto Treasuries in 2025
The trend of crypto treasuries has accelerated in 2025. An October report from asset manager Bitwise identified 48 new companies adding Bitcoin to their balance sheets, bringing the total to 207 firms collectively holding over one million tokens, valued at more than $101 billion. Ether, the second most used cryptocurrency in treasuries, was added to 70 companies’ balance sheets, totaling 6.14 million Ether, worth over $20 billion.
Analysts anticipate that as the cycle matures, DATs will likely consolidate under a few larger players, while some companies may expand into broader areas of Web3. This evolution highlights how treasury companies are reshaping cryptocurrency markets, influencing both pricing and investor behavior in increasingly significant ways.
