Crypto Treasury Consolidation Looming as Firms Struggle

Crypto treasury consolidation looms as active firms buy undervalued rivals.

  • The crypto treasury market is expected to consolidate in 2025 as operating companies acquire rivals trading below their net asset value.
  • Companies generating cash flow from services like blockchain validation or credit instruments have a financial advantage over passive crypto holders.
  • Tokenized real-world assets, particularly public and private credit, are predicted to see significant growth as a revenue stream for crypto treasuries.

The crypto treasury sector is poised for a wave of consolidation in 2025, according to BTCS chief strategy officer Wojciech Kaszycki. He predicts that companies with active business operations will merge with or acquire those trading below the value of their crypto holdings during the market downturn. This trend follows a sector-wide decline where many firms’ stock prices fell below their crypto balance sheet value, even preceding the broader crypto market crash in October.

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Operating businesses, such as those providing validator services or credit instruments, generate crucial cash flow. Consequently, this financial edge allows them to purchase struggling competitors. “If you consolidate with another player, sometimes two plus two equals six or more, you can win faster, because everybody in this market trading below net asset value is struggling,” Kaszycki told Cointelegraph.

Meanwhile, tokenized real-world assets (RWA) are emerging as a key future revenue stream. Kaszycki believes the tokenization of public and private credit will grow substantially over the next two years. These tokenized assets could then be used as collateral on various DeFi platforms for lending and borrowing.

Leading treasury firm Strategy already offers credit-like and fixed-income instruments to investors. The company cited these offerings as a reason for its inclusion in major stock indexes, arguing its operations provide varied economic exposure to Bitcoin.

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