Crypto treasury companies that built their business models around holding large balances of Bitcoin or other digital assets are facing an increasingly uncertain future, with industry executives warning that many may disappear by 2026.
According to reporting by Cointelegraph, the rapid expansion of crypto treasury firms during the recent market cycle has left the sector overcrowded and vulnerable to a weaker price environment. As crypto prices stagnate or fall, several publicly listed treasury companies are now trading below the value of the assets they hold, undermining their ability to raise capital or justify their valuations.
Executives cited in the report argue that the core problem is structural. Many firms offer little beyond passive exposure to crypto assets, effectively competing with simpler and more transparent products such as spot Bitcoin exchange traded funds. When prices rise sharply, that model can attract investors, but during downturns it offers few protections and no recurring revenue.
The risks are particularly acute for companies holding smaller or more volatile tokens. While Bitcoin-focused treasuries may still benefit from long-term institutional interest, altcoin-heavy balance sheets face deeper drawdowns and thinner liquidity, making them harder to defend in stressed market conditions.
Some executives expect a wave of consolidation, asset sales, or outright closures over the next 12 to 24 months. Survivors are likely to be those that combine crypto holdings with active yield strategies, strong cash buffers, and clearer links to real economic activity rather than pure price appreciation.
For investors and regulators, the looming shakeout highlights a broader shift in the crypto market. As regulation advances and institutional products mature, capital is increasingly flowing toward vehicles that resemble traditional finance in structure and risk management. Crypto treasury firms that fail to adapt may struggle to explain why they should exist at all.