Galaxy Digital Warns Crypto Treasury Firms Create ‘Structurally Fragile’ Market
A wave of companies stacking crypto on their balance sheets could increase market risk, with Galaxy Digital comparing it to the 1920s investment trust boom.
Galaxy Digital, the crypto-focused financial services firm founded by Bitcoin bull Michael Novogratz, is cautioning that the fast rise of public companies buying crypto for their balance sheets could potentially make the market “structurally fragile.”
In a July 31 research report, the New York-headquartered crypto firm said the rise of Digital Asset Treasury Companies — or DATCOs — is tied to a single trade: raising equity and using the proceeds to purchase Bitcoin or other cryptocurrencies.
“When hundreds of firms adopt the same one-directional trade (raise equity, buy…
