Galaxy Digital CEO Michael Novogratz stated during the firm's Q2 2025 earnings call that the rapid growth of companies adding cryptocurrencies to their balance sheets has likely peaked. 'We've probably seen the peak in treasury company issuance,' Novogratz declared, shifting focus toward which existing firms will dominate the market.
This trend emerged amid favorable U.S. regulations, with crypto treasury firms raising capital through IPOs to hold digital assets. While early entrants like MicroStrategy (now Strategy) focused primarily on Bitcoin, newer companies diversified into Ethereum, Solana, and smaller-cap tokens. Novogratz highlighted Ethereum's institutional adoption through BitMine and SharpLink but cautioned that new entrants may 'have trouble breathing' as market saturation increases.
Galaxy Digital currently manages assets for over 20 such firms, generating approximately $2 billion in recurring revenue from management fees. The company reported Q2 net income of $30.7 million, reversing a $177 million loss year-over-year, though adjusted EPS of $0.08 missed expectations. Novogratz positioned treasury firms and ETFs as gateways for traditional finance adoption while noting unresolved challenges in asset tokenization, referencing SEC Chairman Paul Atkins' 'Project Crypto' initiative exploring blockchain migration for U.S. markets.