Consolidation expected as digital asset treasuries compete for survival
Crypto treasury companies (DATs) may be heading toward a period of consolidation as competition intensifies, according to David Duong, head of investment research at Coinbase. Duong suggested that mergers and acquisitions could become more common as the sector matures and firms seek to differentiate themselves.
Speaking recently, Duong noted that beyond financial maneuvers such as share buybacks, companies may start pursuing mergers and acquisitions, much like the Strive and Semler Scientific deal announced in September. The all-stock acquisition marked one of the first consolidations among treasury firms, setting a precedent for others in the industry.
Standard Chartered has also predicted that not all DATs will survive long term, meaning weaker players may either fade away or be absorbed by stronger competitors.
Competition for Token Dominance
Coinbase researchers Duong and Colin Basco previously wrote that the DAT race has entered a “player-vs-player” phase, where firms compete directly to dominate holdings in individual tokens.
Some companies have turned to share repurchases as a strategy. For instance, Thumzup, a media firm holding Bitcoin and Dogecoin, expanded its buyback program from $1 million to $10 million in late September. Similarly, Solana treasury company DeFi Development Corp increased its buyback plan from $1 million to $100 million.
“Only a handful of major players will dominate each token, and they are competing to differentiate themselves through either size or financial engineering,” Duong explained.
Buybacks Don’t Always Deliver
Despite the activity, Duong cautioned that share buybacks don’t always guarantee higher prices, since results depend heavily on investor sentiment. “The effectiveness of buybacks hinges on perceptions of a company’s underlying fundamentals,” he said.
He pointed to TON Strategy Company’s recent repurchase program, which failed to boost investor confidence—shares dropped 7.5% following the announcement.
Growing Crypto Treasury Holdings
Despite market challenges, DATs have accumulated significant assets. Over 1.4 million Bitcoin—around 6.6% of circulating supply—are now held in corporate treasuries, worth more than $166 billion.
Alongside BTC, 68 companies collectively hold 5.49 million Ether (over $24 billion), while nine entities own more than 13.4 million Solana tokens valued above $3 billion.
As consolidation looms, crypto treasuries are shifting from rapid accumulation to survival strategies. Mergers, acquisitions, and more complex financial maneuvers could reshape the industry, leaving only a few dominant players holding the largest reserves of Bitcoin, Ether, and Solana.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.