The crypto treasury frenzy
This U.S. summer, a new investment frenzy – akin to the SPAC (Special Purpose Acquisition Company) exuberance of 2020/21 – has gripped Wall Street as companies transform their balance sheets into crypto vaults. And as September unfolds, the corporate dash into cryptocurrencies shows no signs of slowing.
From Japanese hotel operators to chipmakers, tech startups, and legacy manufacturers, they have all funnelled tens of billions into Bitcoin and altcoins, reimagining their cash reserves as bets on digital assets.
Michael Saylor arguably kicked it all off with his 2020 gamble at Strategy (formerly MicroStrategy), but so inspiring was the move that it has morphed into a mainstream trend, if not a mania. A pro-crypto White House has also supercharged the trend. President Trump’s pledge to crown the U.S. as the “crypto capital of the planet,” coupled with crypto-savvy appointees and pending legislation, unlocked the floodgates.
Trump Media & Technology Group typified the shift, snapping up US$2 billion in Bitcoin and securities. What was once a fringe idea, the Crypto Treasury Pivot now boasts 209 public companies holding US$145 billion in crypto, a figure that ballooned with US$86 billion raised year-to-date.
You heard that right; firms raised billions not for research and development (R&D) or expansion, but to buy and hoard Bitcoin and altcoins.
As the U.S. autumn cools the climate and the market, however, the share prices of these crypto-holders are falling (Strategy is down 27 per cent from its July high, even as Bitcoin has declined only eight per cent from its August high).
Summer lovin’
Fueled by a crypto-friendly political climate under President Trump, the trend exploded with companies announcing plans to raise over US$86 billion for crypto purchases since January 2025, dwarfing U.S. initial public offering (IPO) proceeds. By July, the momentum intensified, with entities like BIT Mining shifting to Solana treasuries worth up to US$300 million, and Upexi amassing over two million SOL (Solana) tokens after a US$200 million raise. Even Trump Media joined the fray, launching a SPAC-backed venture to accumulate CRO (Cronos) tokens, sending the asset up 30 per cent on announcement.
High-profile backers then amplified the excitement. Venture capitalists like Peter Thiel’s Founders Fund poured US$250 million into Bitmine Immersion Technologies for Ether buys, rocketing its valuation from US$26 million to over US$2 billion. Banking heavyweights, including former Barclays CEO Bob Diamond, formed entities to chase obscure tokens like Hype, backed by hedge funds and ex-Fed officials, while custodians like BitGo reported a surge in corporate clients, managing treasuries for dozens of new players.
Overall, and according to reports, 209 public companies held US$145 billion in digital assets by early September, with Bitcoin treasuries alone adding US$5 billion in August despite a slowdown from July’s haul.
Proponents argue this isn’t speculation – it’s strategic. Firms like Strategy have seen shares soar 153 per cent in the past year by leveraging debt and equity to buy Bitcoin, now valued at over US$115 billion in holdings. Treasuries allow staking for yields (unavailable to exchange traded funds (ETFs)) and borrowing against assets for amplified returns. Deloitte’s Q2 2025 CFO survey showed North American finance leaders warming to crypto for treasury diversification, citing inflation hedges and potential upside.
Clouds on the horizon?
Of course, everyone says something similar when the asset they’ve bought is at all-time highs and reinforcing their thesis.
Sceptics, however, see red flags everywhere.
Why, for example, would you pay a premium for a company’s crypto holdings when investors can buy Bitcoin directly via low-cost ETFs? Many treasuries trade at valuations far exceeding their assets – like buying a dollar for two dollars.
Meanwhile, corporate Bitcoin buying slowed in August, with treasuries reportedly adding just 47,718 BTC amid a cooling market. Consequently, share prices for these firms have plunged: Strategy and Metaplanet have led the declines, with “crypto treasury” stocks under broad pressure.
Perhaps unsurprisingly, Jim Chanos and other shorts are betting against them, calling it a frenzy reminiscent of the pandemic SPAC boom – something we warned about at the time here at the blog.
That Meta and Microsoft shareholders voted down Bitcoin treasury proposals, prioritising core operations over crypto gambles, at the same time that others are ploughing ahead and even shifting to altcoins, adds fuel to the idea the whole thing could be a bubble.
While Bitcoin treasuries dominate, companies are also wagering on riskier tokens like intellectual property (IP) (surging on adoption by Heritage Distillery), Solana, and even HYPE. Meanwhile, insiders appear to be selling. Executives at firms like Tron Inc. (formerly SRM Entertainment) sold millions of shares, pocketing gains while the stock price cratered.
And while regulation and larger institutional flows are likely to reduce volatility, we’re not there yet. Consequently, volatility remains the sector’s Achilles’ heel. By way of example, Sequans’ US$384 million Bitcoin raise yielded a 215 per cent share price pop followed by a 66 per cent drop. As Wintermute’s Evgeny Gaevoy warned, a bear market could “crash and burn” these setups, hurting retail investors. Even Strategy’s Saylor cautions against altcoin bets, noting their speculative risks.
Embrace or beware?
The booming Bitcoin price has spawned an assortment of tangential strategies for investors (or speculators) to consider. While dressed up in a variety of guises, many are directional bets on the digital currencies themselves, and investors need to remember that in the absence of widespread industrial use, the price of cryptocurrencies will reflect popularity – something that is near impossible to predict consistently.
The crypto treasury trend offers tantalising opportunities – leveraged exposure, yields, and alignment with a maturing digital asset class now worth US$4.11 trillion. Institutional inflows, like Capital Group’s US$6 billion bet, as well as legislation, such as the GENIUS Act, signal the sector’s emerging legitimacy.
For that reason, I believe it will pay investors to keep an eye on the sector, especially on funds that offer market-neutral strategies. These don’t need bitcoin to rise, in order to profit, and they take advantage of volatility as well as the still inefficient market that produces relatively wide spreads for the same instrument across multiple exchanges.
Overhyped valuations, recent pullbacks, and altcoin proliferation suggest a bubble in crypto treasury stocks, mirroring past manias. Investors might fare better with diversified funds, avoiding the premiums and corporate risks, or market-neutral, high-frequency or arbitrage funds. These latter funds look forward to rising volatility in a still inefficient market.
While crypto treasuries could revolutionise corporate finance, they might merely become the next cautionary tale in a long line of cautionary tales that arguably began with tulips.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
