Jack Paul 
The crypto treasury reality check
I think we’re seeing something important happening right now. Crypto treasury companies, those firms that basically hold digital assets as their main business, are hitting their first real test. For a while there, it seemed like just buying crypto and waiting for prices to go up was enough. But now, the market is telling a different story.
According to recent data, about 40% of these digital asset treasury companies are trading below their net asset value. That means investors value the companies less than the actual crypto they hold. That’s a pretty clear signal, if you ask me. The novelty has worn off, and what worked during the hype phase isn’t cutting it anymore.
From passive holders to active participants
Here’s where things get interesting. The next wave of successful crypto treasury firms will need to do more than just accumulate assets. They’ll have to actually use those assets productively. Bitcoin treasuries face some natural limitations—Bitcoin isn’t very programmable, so opportunities are mostly about balance-sheet engineering.
But Ethereum, Solana, and other programmable networks offer different possibilities. Treasury companies can stake their holdings, provide liquidity, or even run infrastructure like validators and nodes. These activities generate yield while strengthening the ecosystems they operate within. Some firms are already moving in this direction, developing operational ecosystems that use their capital as fuel for innovation rather than just sitting on it.
The business model evolution
Staking rewards and passive yield might keep a treasury solvent, but they probably won’t sustain investor confidence over the long term. To attract durable capital, these companies need to start operating like real businesses. There’s a useful reference point here—Berkshire Hathaway’s model of being an investment vehicle that also builds and acquires productive operations.
In the crypto context, this might mean acquiring infrastructure businesses that benefit from treasury scale, like validators or middleware providers. Or building proprietary tools and services that monetize holdings, such as trading platforms or data analytics products. The goal is to develop recurring revenue streams that demonstrate consistent, productive use of the treasury.
Foundation partnerships and future directions
Blockchain foundations are starting to recognize that scaled treasury companies can actually help accelerate ecosystem growth. These firms have both capital and operational flexibility, making them natural partners for foundations looking to strengthen liquidity and network activity.
Some foundations are already providing support mechanisms—selling assets at discounts to help treasury vehicles attract investors early on, offering marketing support, or facilitating direct integrations. This creates a mutually beneficial relationship where foundations retain alignment through token holdings while treasury companies gain freedom to experiment commercially.
What comes next
The compression of market-to-NAV ratios marks the end of the easy-money phase for crypto treasury companies. Hype alone won’t maintain valuations anymore. These firms will need to prove that crypto assets can underpin superior business models—models that generate recurring revenue, support ecosystem growth, and justify investor confidence even when markets are flat.
This adjustment might be painful, but it’s probably necessary. Markets are maturing, and investors now expect operational depth, governance transparency, and clear pathways to sustainable yield. The companies that deliver on these fronts won’t just survive the current downturn—they might actually define what mainstream crypto adoption looks like in the next phase.
It’s a shift from being passive holders to becoming active participants. From being speculative vehicles to becoming long-term builders. And honestly, that feels like a healthier direction for everyone involved.