A potential selling of Bitcoin could effectively prevent the establishment of new digital asset treasury companies, according to Matthew Sigel, a representative from VanEck.
In the ever-evolving world of cryptocurrency, Matthew Sigel, head of digital assets research at investment firm VanEck, presents a cautious but nuanced outlook for digital asset treasury (DAT) companies amid a potential bearish reversal for Bitcoin.
Sigel notes that while Bitcoin's fixed supply and stable issuance have historically made it the favored treasury asset, its rigidity could be a downside in changing market conditions. He highlights Ethereum-based DATs as increasingly attractive alternatives due to their deflationary monetary structure, staking rewards, and opportunities in decentralized finance (DeFi), which offer yield generation beyond simple price appreciation.
Firms holding ETH can stake their assets to earn validator rewards and benefit from network fees, strategies not as easily available to Bitcoin holders. This has led to growing momentum for ETH treasuries, as they provide a diversified and yield-generating treasury option compared to Bitcoin's more static design.
In terms of Bitcoin treasury plays, Sigel discusses the space's rapid growth with 15 treasury companies having acquired around 30,000 BTC collectively. However, he also suggests the sector might be becoming crowded, implying increased competition and possibly diminishing returns for new entrants.
A bifurcation is expected between DAT firms that draw a line in the sand and refuse to dilute below 1x MNAV, and those that might be acquired. If Bitcoin sells off, some DAT firms' multiple of net asset value (MNAV) could fall below one, suggesting their stocks are trading at a discount.
Meanwhile, DAT companies holding various altcoins are expected to continue growing as long as the price of Bitcoin remains bullish. For instance, Galaxy Digital moved $447,000,000 worth of Bitcoin, sending most to crypto exchanges.
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[1] Sigel, M. (2025). Digital Asset Treasury Companies: Navigating a Changing Landscape. The Daily Hodl. [2] VanEck Research. (2025). Bitcoin Treasury Plays: A Growing but Crowded Space. The Daily Hodl. [3] VanEck Research. (2025). Ethereum-Based Treasuries: A Yield-Generating Alternative. The Daily Hodl.
- Sigel's research at VanEck proposes Ethereum-based Digital Asset Treasury (DAT) companies as attractive alternatives to Bitcoin, due to their deflationary monetary structure, staking rewards, and opportunities in DeFi, offering yield generation beyond simple price appreciation.
- In the cryptocurrency market, potential participants are examining the growth of Bitcoin treasury companies, with 15 firms collectively acquiring around 30,000 BTC, yet Sigel suggests the sector may be becoming crowded, leading to increased competition and possibly diminishing returns for new entrants.
- Firms holding various altcoins are projected to continue growing, as seen in Galaxy Digital's recent move of $447,000,000 worth of Bitcoin to crypto exchanges, under the optimistic condition that the price of Bitcoin remains bullish.
