Crypto treasury model faces shakeout as 2026 outlook darkens

Digital asset treasury companies are facing a difficult outlook heading into 2026 as market conditions deteriorate and investor sentiment weakens.

Executives say many crypto treasury firms that launched during the 2025 boom are now struggling to justify their valuations.

Altan Tutar, co-founder and chief executive of crypto yield platform MoreMarkets, warned that the sector faces a major shakeout.

Going into the next year, I think that the outlook for DATs is looking a bit bleak.

Altan Tutar said.

A wave of treasury firms emerged in 2025 as institutional investors sought indirect exposure to Bitcoin and other cryptocurrencies.

Many of these companies benefited initially as Bitcoin surged to record highs in October.

Subsequent market declines have sharply reduced share prices and highlighted structural weaknesses in the model.

Tutar said most crypto treasury companies are unlikely to survive prolonged market stress.

Most Bitcoin treasury companies will disappear with the rest of the DATs.

Altan Tutar said.

He added that treasuries focused on smaller or volatile altcoins face the highest risk.

Even firms centred on major assets such as Ethereum, Solana and XRP may struggle, he said.

Ryan Chow, co-founder of Solv Protocol, said the number of Bitcoin-holding firms doubled during 2025.

Chow warned that simple asset accumulation is not a sustainable growth strategy during downturns.

Those that survive will treat Bitcoin as part of a broader yield strategy.

Ryan Chow said.

Executives agreed that crypto treasuries must evolve towards disciplined, yield-focused financial management to endure.

At the time of reporting, Bitcoin price was $89,003.69.