Galaxy CEO Warns: Bitcoin-Holding Firms May Have Hit Their Peak—Time to Pivot?
MicroStrategy’s not the only one sweating. Galaxy Digital’s CEO drops a truth bomb: Corporate Bitcoin treasuries might’ve maxed out their glory days.
### The corporate BTC craze hits a wall
Remember when every CFO suddenly became a 'long-term HODLer'? Turns out stuffing balance sheets with volatile assets has… consequences. Who knew?
### Institutional FOMO meets reality
Quarterly earnings reports don’t care about your laser-eyed Twitter bio. When Bitcoin dips 30%, even diamond hands turn to spreadsheet panic.
### The cynical take
Wall Street’s latest lesson: You can’t hedge inflation with an asset that moves 10% before breakfast. But hey—at least the shareholder slides looked cool for a while.
Peak Treasury Issuance Behind Us
Speaking on Galaxy’s Q2 earnings call Tuesday, Novogratz said the proliferation of crypto treasury companies has likely peaked. “We’ve probably gone through peak treasury company issuance,” he stated. “The question now is which of the existing companies will become monsters.”
Ethereum already has two major treasury holders—Tom Lee’s BitMine and Joe Lubin’s SharpLink—both expected to keep growing. New entrants may “have a harder time getting oxygen,” Novogratz warned.
Galaxy Digital collaborates with over 20 crypto treasury firms, earning management fees for overseeing their digital asset holdings. These partnerships have added roughly $2 billion in assets to Galaxy’s platform, generating what Novogratz called “recurring income that will go on and on.”
The rise of US crypto treasury firms has benefited from improved regulatory conditions. Early adopters followed MicroStrategy’s Bitcoin-heavy approach, while newer entrants have diversified into Ethereum, Solana, and other tokens.
Galaxy recently executed what Novogratz called “a 9-plus-billion-dollar trade” that he believes was “the largest or one of the largest Bitcoin trades in history.” The successful execution demonstrated strong market confidence in Galaxy’s brand and services. July marked Galaxy’s best month on record across all business lines.
Galaxy reported Q2 net income of $30.7 million, recovering from a $177 million loss the previous year. However, shares fell 7% Tuesday as the company missed earnings estimates amid declining spot trading activity.
