In recent years, companies like MicroStrategy pioneered the “crypto treasury model,” embedding digital assets into corporate balance sheets. But according to Mike Novogratz, this trend has now matured. Rising competition, regulatory pressures, and market volatility make the model unsustainable for new entrants. Novogratz argues that from now on, only companies with strong foundations will survive.
Corporate Treasuries Must Be Selective
The number of firms adding crypto to their balance sheets has grown rapidly in recent years. While holding Bitcoin and Ethereum initially appeared bold and innovative, Novogratz notes that this model is no longer viable for everyone.
He emphasizes: “The real challenge isn’t just adding the asset—it’s managing it sustainably.” In other words, adopting crypto in corporate finance requires a solid infrastructure capable of handling volatility.
The Galaxy Digital CEO predicts fewer companies will pursue this strategy going forward, while competition among existing players will intensify. “Not everyone can enter this game. Those who are in will either grow—or disappear.”
The MicroStrategy Model: Inspiration or Exception?
When it comes to integrating crypto into corporate treasuries, MicroStrategy is the first name that comes to mind. Led by CEO Michael Saylor, the company has aggressively accumulated Bitcoin since 2020, setting an example for others.
But Novogratz stresses that not every company can become the next MicroStrategy. “They moved early, took risks, and had perfect timing,” he says. With tighter regulations and persistent volatility, replicating that success has become far more difficult.
Novogratz even describes MicroStrategy as a “crypto public icon” rather than just a company, but warns: “You need patience, capital, and strong governance—not just Bitcoin—to make this strategy work.”
Galaxy Digital’s Position and the Market’s New Balance
Novogratz also outlined Galaxy Digital’s evolving role. The firm currently serves over 20 institutional clients, managing more than $2 billion in digital assets.
He notes that the business model has shifted from one-off profits to recurring revenue, transforming Galaxy into a long-term financial partner rather than just a trading service.
Novogratz expects future strategies to extend beyond Bitcoin. Assets like Ethereum and other smart contract platforms will likely gain greater presence in institutional portfolios. Accordingly, Galaxy is expanding its services to include not only custody and trading but also reporting, compliance, and accounting integration.
As Novogratz concludes: “The companies that survive will be those that can integrate crypto into their business processes—not just believe in it.”
