Coinbase's head of investment research, David Duong, has forecasted that the crypto treasury market is entering a maturation phase, likely leading to increased mergers and acquisitions (M&A) among digital asset treasury (DAT) firms. In a recent interview, Duong compared this trend to the all-stock acquisition of Semler Scientific by Strive Asset Management in late September 2025, suggesting it could become a broader industry pattern as companies seek to scale and differentiate in a competitive landscape.
Duong explained that as the sector evolves, firms may shift from merely accumulating crypto assets to pursuing M&A deals to enhance their market position, attract investors, and access better resources. He highlighted that this consolidation could mirror traditional financial cycles, where only a few dominant players remain. Additionally, DATs are increasingly adopting crypto-native yield strategies like staking and DeFi looping to generate returns and diversify portfolios. Staking involves holding assets in blockchain networks for rewards, while DeFi looping refers to repeated borrowing and repositioning to boost yields.
However, Duong cautioned that the long-term future of these strategies depends on regulatory shifts, liquidity, and market pressures. Many DATs face challenges, such as share prices losing up to 90% of their value due to market saturation and sustainability concerns. In response, some companies have turned to share buybacks; for instance, Thumzup expanded its program from $1 million to $10 million, and Solana-focused DeFi Development Corp increased its repurchase from $1 million to $100 million. Yet, Duong noted that buybacks are sentiment-driven and not always effective, citing TON Strategy Company's repurchase that coincided with a 7.5% decline in shares. He emphasized that success hinges on market perception of a company's capital allocation and transparency.
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