The surge in companies created to hold cryptocurrencies on their balance sheets has likely reached its peak, according to Galaxy Digital (TSX:GLXY) founder and CEO Michael Novogratz.
"We’ve probably gone through peak treasury company issuance," Novogratz said Tuesday during Galaxy Digital’s second-quarter earnings call. "The question now is which of the existing companies become monsters."
Novogratz highlighted that Ethereum, the second-largest cryptocurrency, already has two major treasury holders - Tom Lee’s BitMine and Joe Lubin’s SharpLink - which he expects will continue to grow. He cautioned that new market entrants may "have a harder time getting oxygen."
Galaxy Digital currently works with more than 20 crypto treasury investment firms, collecting management fees for overseeing their cryptocurrency holdings. These partnerships have added approximately $2 billion in assets to Galaxy’s platform, generating what Novogratz described as "recurring income that will go on and on."
Crypto treasury companies, which raise capital in public markets and invest their corporate cash in digital tokens, have multiplied in recent months, benefiting from a more favorable regulatory environment in the United States.
source https://www.investing.com/news/cryptocurrency-news/bitcoin-treasury-companies-have-peaked-says-galaxys-novogratz-4170900
