“We may have passed the peak of crypto treasury company issuance.”
— Michael Novogratz, CEO Galaxy Digital
📌 Overview
• In the Q2 results announcement, Michael Novogratz affirmed that the crypto treasury issuance wave of companies may have peaked — emphasizing that the market will now be selective about which companies have the potential to become the 'big players' in the industry.
• New entrants may struggle to attract capital and attention like the established 'giants' such as MicroStrategy, BitMine (Tom Lee), and SharpLink (Joe Lubin).
💼 Galaxy Digital — Focus on Corporate Asset Management Services
• Galaxy currently manages over 20 treasury companies, with total assets nearing 2 billion USD in the fund. This creates a stable management fee revenue stream, in line with the 'recurring income' model that Novogratz describes as 'will continue forever.'
• Q2 revenue reached 30.7 million USD – a turnaround from a loss of 177 million USD in the same period of 2023, although still below expectations and causing stock prices to drop by about 7%.
🏛 Regulatory Environment & Future Trends
• The founder of Galaxy pointed out that the early growth of treasury companies was supported by a favorable regulatory environment in the US; however, the level of saturation is about to appear. New companies will struggle to stand out without a differentiated strategy and strong capital.
• While many crypto startups continue to pursue a BTC/ETH holding model, Novogratz warns that success in the next phase depends on the ability to optimize capital governance and drive scale.
