Michael Novogratz says the rush to create companies holding cryptocurrencies on their balance sheets may have already peaked.
The Galaxy Digital founder and CEO made the comments Tuesday during the firm’s second-quarter earnings call.
“We’ve probably gone through peak treasury company issuance,” Novogratz said. “The question now is which of the existing companies become monsters.”
Favorable US Rules Fuel Growth in Crypto Treasury Firms
Crypto treasury companies have gained momentum in recent quarters, especially as US regulatory conditions have become more favorable. These firms raise capital in public markets and allocate a portion or all of their reserves into digital assets like Bitcoin, Ethereum or other blockchain-based tokens.
A growing list of public companies has adopted this approach. That includes Strategy (formerly MicroStrategy), GameStop, Trump Media & Technology Group, SharpLink Gaming and Bit Digital. Their holdings span Bitcoin, Ethereum, Solana and Litecoin.
Ethereum already has two major corporate treasury holders, Tom Lee’s BitMine and Joe Lubin’s SharpLink. Novogratz expects both to keep expanding but warned that new entrants may “have a harder time getting oxygen” as the space becomes more saturated.
Novogratz Sees Recurring Revenue From Treasury Partnerships
Galaxy Digital manages crypto holdings for more than 20 treasury-focused firms. The company earns fees for overseeing these assets, which now total around $2b on its platform. Novogratz described it as “recurring income that will go on and on.”
In May, Galaxy shifted its public listing from the Toronto Stock Exchange to the Nasdaq Global Select Market. It now trades under the ticker symbol GLXY, marking a strategic move to deepen its US footprint.
@galaxyhq has explored the tokenization of its $GLXY shares and reported a 43% drop in total assets to $6.3 billion in Q2. #GLXY #Tokenizationhttps://t.co/2go2wQ7tLn
— Cryptonews.com (@cryptonews) August 5, 2025
The company also disclosed in a SEC filing that it is exploring tokenization of its publicly traded shares. That initiative forms part of Galaxy’s broader effort to expand into blockchain-based financial infrastructure.
Founded in 2018, Galaxy Digital offers a wide range of crypto-focused services, including asset management, trading, investment banking and infrastructure solutions. It targets institutional clients looking to gain exposure to digital assets.
Novogratz suggested the market’s attention is turning away from the influx of new treasury players. Instead, focus is shifting to which existing firms will scale meaningfully in the next phase of the cycle.
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