Michael Novogratz says the push to create firms holding cryptocurrencies on their stability sheets might have already peaked.
The Galaxy Digital founder and CEO made the feedback Tuesday in the course of the agency’s second-quarter earnings name.
“We’ve in all probability gone by peak treasury firm issuance,” Novogratz mentioned. “The query now could be which of the prevailing firms turn out to be monsters.”
Favorable US Guidelines Gasoline Development in Crypto Treasury Companies
Crypto treasury firms have gained momentum in current quarters, particularly as US regulatory circumstances have turn out to be extra favorable. These companies increase capital in public markets and allocate a portion or all of their reserves into digital property like Bitcoin, Ethereum or different blockchain-based tokens.
A rising checklist of public firms has adopted this strategy. That features Technique (previously MicroStrategy), GameStop, Trump Media & Know-how Group, SharpLink Gaming and Bit Digital. Their holdings span Bitcoin, Ethereum, Solana and Litecoin.
Ethereum already has two main company treasury holders, Tom Lee’s BitMine and Joe Lubin’s SharpLink. Novogratz expects each to maintain increasing however warned that new entrants might “have a more durable time getting oxygen” because the area turns into extra saturated.
Novogratz Sees Recurring Income From Treasury Partnerships
Galaxy Digital manages crypto holdings for greater than 20 treasury-focused companies. The corporate earns charges for overseeing these property, which now whole round $2b on its platform. Novogratz described it as “recurring revenue that may go on and on.”
In Might, Galaxy shifted its public itemizing from the Toronto Inventory Trade to the Nasdaq World Choose Market. It now trades underneath the ticker image GLXY, marking a strategic transfer to deepen its US footprint.
@galaxyhq has explored the tokenization of its $GLXY shares and reported a 43% drop in whole property to $6.3 billion in Q2. #GLXY #Tokenizationhttps://t.co/2go2wQ7tLn
— Cryptonews.com (@cryptonews) August 5, 2025
The corporate additionally disclosed in a SEC submitting that it’s exploring tokenization of its publicly traded shares. That initiative kinds a part of Galaxy’s broader effort to broaden into blockchain-based monetary infrastructure.
Based in 2018, Galaxy Digital affords a variety of crypto-focused providers, together with asset administration, buying and selling, funding banking and infrastructure options. It targets institutional purchasers seeking to achieve publicity to digital property.
Novogratz advised the market’s consideration is popping away from the inflow of latest treasury gamers. As a substitute, focus is shifting to which present companies will scale meaningfully within the subsequent part of the cycle.
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