The number of crypto treasuries and institutional interest has been booming in recent years, with many public companies adding cryptocurrency to their portfolios to diversify their holdings, hedge against inflation, and attract new investors. With the increasing number of companies launching their own crypto treasury, some analysts are worried about the risks involved.
Cofounder and CEO of San Francisco-based Anchorage Digital, Nathan McCauley, who spotted a trend of institutions launching their treasuries, stated, “Over the past six months, the trend has reached ‘fever pitch’ and ‘has gone fully contagious.
Pantera Capital’s plan to launch the Solana treasury
According to a recent report, a crypto media, Pantera Capital is planning to launch a Solana treasury company, and is expected to raise $1.25 billion. The digital asset fund manager is reportedly said to convert a publicly-traded company into a Solana treasury firm, tentatively named Solana Co., by raising an initial sum of $500 million, and then another $750 million through warrant issuance.
More than $10 billion worth of ETH is held in companies
Data from Social Engagement Ratio 64 entities—including publicly listed companies, exchanges, DeFi protocols, nonprofits, and governments—collectively hold 2.73 million ETH in their treasuries, worth more than $10.5 billion. Among them, Bitmine accounts for 625,000 ETH, SharpLink with 438,200 ETH, and Ether Machine with 334,800 ETH. On the institutional side, BlackRock’s fund is the largest holder, amassing $4.19 billion in inflows during this cycle and controlling over 3 million ETH—representing roughly 2.5% of the total supply.
ProCap Financial expects to hold $1 billion
ProCap Financial, led by Anthony Pompliano, is being formed through a SPAC merger with Columbus Circle Capital and plans to hold up to $1 billion in Bitcoin, backed by commitments from firms like Susquehanna and Jane Street. Meanwhile, the Bitcoin Standard Treasury Company (BSTR) — spearheaded by Adam Back in partnership with Cantor Fitzgerald — is going public with 30,021 BTC already secured and up to $1.5 billion.
What are treasuries, and how do they function?
Companies launch treasuries to accumulate and manage large holdings of assets—like Bitcoin or Ethereum—as strategic reserves, positioning themselves to benefit from long-term appreciation, hedge against inflation, and signal confidence to investors.
In practice, a treasury functions as the company’s reserve pool, funded through equity, debt, or direct capital raises, which is then deployed to purchase and hold crypto.
Analysts’ views on the institutional acquisition and treasury launches
According to BitcoinTreasuries.net, (3.68 million BTC), 18% of bitcoin’s circulating supply is held across companies, exchange-traded funds (ETFs), governments, decentralized finance (DeFi) protocols, and custodians. However, with almost one-fifth of the supply in the above-mentioned companies, credit rating company Morningstar DBRS highlighted a range of vulnerabilities in corporate crypto treasury strategies, including regulatory uncertainty, liquidity challenges during periods of volatility, and exposure to exchange counterparties.
Ran Neuner, a crypto analyst, is critical of many treasury firms, suggesting they often serve as exit vehicles for insiders rather than genuine buyers in the open market. He warns that retail investors could be left holding overpriced shares when the hype fades
According to Franklin Templeton Digital Assets analysts, the crypto treasury boom carries a hidden threat of a negative feedback loop, especially as more companies adopt this model via debt or equity to acquire crypto assets.
