Digital asset treasury (DAT) firms could be heading toward a period of consolidation as the market cycle matures, according to Coinbase’s head of investment research, David Duong. He said mergers and acquisitions may soon play a larger role as companies seek to strengthen their positions and attract investors.
Duong explained that treasury companies may follow the example set by Strive and Semler Scientific. On Sept. 22, Strive, which shifted from asset management to a Bitcoin treasury model, announced it was acquiring Semler Scientific in an all-stock transaction.
“Companies may start to pursue mergers and acquisitions, much like the recent Strive and Semler Scientific deal, as we approach the more mature phases of the DAT cycle,” Duong said.
Alongside merger activity, some treasurers are exploring crypto-native strategies. Such approaches include yield generation through staking, and DeFi looping, which entails asset borrowing and return to positions to upscale yields. The long-term outlook of these strategies would depend largely on Duong, on regulation, liquidity, and the broader market conditions.
Competitive Pressure Between Treasuries
In a report released on Sept. 10, Duong and Coinbase researcher Colin Basco described the DAT market as entering a “player-versus-player” phase. They argued that treasuries are now competing directly to stand out, both through size and financial engineering.
Recent activity supports that view. Several treasury companies have launched share repurchase programs to support stock performance. Thumzup, a media firm linked to Donald Trump Jr. that holds Bitcoin and Dogecoin, raised its buyback program from $1 million to $10 million on Sept. 24. DeFi Development Corp, a Solana treasury, boosted its own plan from $1 million to $100 million.
“I believe where this is coming from is that companies are under the impression that only a handful of major players will dominate each token, and they are competing to differentiate themselves through either size or financial engineering,” Duong said.
Standard Chartered offered a similar assessment on Sept. 15, suggesting that many treasuries will need to adjust strategies or risk falling out of the market.
Debate Over Buyback Effectiveness
While buybacks are being used to support valuations, Duong cautioned that they may not always achieve their intended result. He said outcomes depend heavily on how investors interpret the moves.
“The effectiveness of buybacks hinges on investors’ perceptions of a company’s underlying fundamentals,” he explained. “If a DAT is using buybacks as a defensive maneuver to reduce its float, but market players think the company retains an efficient capital allocation strategy and transparent funding, then its share price may benefit. Conversely, the reverse is true when the right conditions aren’t met.”
An example came on Sept. 12, when TON Strategy Company, formerly Verb Technology Company, announced a repurchase plan. Shares fell 7.5% after the news, suggesting investors saw the move as a sign of weakness rather than strength.
Treasury Holdings in Major Tokens
Despite volatility, digital asset treasuries have built large reserves of leading cryptocurrencies. Data shows that DATs holding Bitcoin now control more than 1.4 million coins, equal to around 6.6% of supply and valued at roughly $166 billion.
Ethereum treasuries collectively hold 5.49 million Ether, worth more than $24 billion. Solana has also attracted treasury interest, with nine public entities holding more than 13.4 million tokens valued above $3 billion.
These holdings clearly reveal that DATs have an ever-extending role to play within the digital landscape of assets. While such means as M&A or buyback or even staking may determine how firms compete with each other, the sheer scale of reserves that treasury companies have amassed so far ensures they remain one of the most important market players.
