📰 Headline Summary
Mike Novogratz, CEO of Galaxy Digital, said the recent boom where companies and institutions were heavily investing in crypto assets as treasury reserves has likely reached its peak.
📌 What Does It Mean?
In the last few years:
Many companies (especially in the U.S. and Asia) added Bitcoin and Ethereum to their corporate treasuries (like Tesla did in 2021).
Crypto was being used as a hedge against inflation, traditional finance risk, or to attract tech-savvy investors.
This strategy became a trend, with many firms allocating part of their reserves to BTC or ETH.
But now, according to Novogratz:
> 🔻 That wave has slowed down.
💬 Novogratz’s Key Points:
1. “That trade is probably done for now.”
The early rush is over. New institutional buyers are not entering with the same force.
2. Big players already benefitted
Companies that moved early (2020–2023) made massive gains.
Now, price volatility and regulation fears are holding others back.
3. Crypto still remains in corporate strategy
But it’s not the hot trend it was.
Only selective adoption will happen, especially in tech firms or high-risk sectors.
📊 Why Is This Important?
It signals a cooling-off in institutional hype.
Could reduce short-term demand from large buyers.
Suggests crypto is maturing — from hype phase to selective, strategic use.
🧠 Final Thought
> Crypto as treasury reserve is no longer the “new gold rush.”
Companies will still invest in it — but c
autiously, with proper legal frameworks and clearer financial goals.
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