Arkham Explains Rise of Crypto Treasury Companies

• Crypto treasury firms hold assets like Bitcoin and Ethereum, letting investors gain exposure through stocks.

• Strategy model expands across firms and assets, including mining, staking, and multi-crypto holdings.

• Volatility risks persist, with metrics like NAV and mNAV used to track valuation and performance.

Public companies are increasingly holding Bitcoin, Ethereum, and other digital assets on their balance sheets, as Arkham Intelligence outlined how crypto treasury firms give investors indirect exposure through equities, with the strategy gaining traction since 2020 through firms like Strategy and expanding across multiple sectors and assets.

How The Treasury Model Works

According to Arkham, a crypto treasury company holds a significant share of its assets in digital currencies. These firms raise capital through stock or debt issuance and use proceeds to acquire crypto.

As a result, their stock performance often tracks the underlying asset. This structure allows investors to gain exposure without directly holding tokens. The model originated with Strategy, formerly MicroStrategy, under Michael Saylor in 2020.

The company redirected capital into Bitcoin, building one of the largest corporate holdings. Since then, others have followed. Marathon Digital Holdings combines mining with accumulation, while BitMine Immersion Technologies shifted focus toward Ethereum.

Expansion Across Assets And Companies

The strategy has expanded beyond Bitcoin and Ethereum. Forward Industries now holds large Solana reserves, funded through private investment deals.

Meanwhile, companies like MetaPlanet have built significant Bitcoin positions, earning comparisons to early adopters. In addition, Tesla and SpaceX previously added Bitcoin to their balance sheets.

Ethereum-focused treasury firms have also emerged. These companies can generate yield by staking assets, unlike Bitcoin holders. For example, BitMine holds a large share of Ethereum supply and earns annual returns through staking rewards.

Risks, Metrics And Market Impact

However, Arkham notes that the strategy carries risks. Crypto price volatility can directly impact company balance sheets and investor sentiment. In prolonged downturns, firms may sell holdings to cover expenses or repay debt.

This can lock in losses and pressure stock prices. Investors often track metrics such as Net Asset Value and mNAV. These indicators measure holdings and valuation premiums relative to crypto assets.

Arkham also highlights transparency tools. Its platform allows users to monitor wallet activity, balances, and transactions in real time, improving visibility into company operations.