Key Takeaways:
Digital asset treasury companies raised just $180 million in May, the lowest monthly total since October 2024, as ETFs and investor demands for yield dismantle the "raise-and-hold" model.
Monthly inflows into digital asset treasury companies fell to $180 million in May, down 95% from April's $4.4 billion, DefiLlama data shows.
"The raise-and-hold era for DATs is over," Galaxy Digital said in a recent report, arguing that treasury firms must put assets to work through staking, validator infrastructure or DeFi strategies rather than relying on passive token accumulation.
Bitcoin treasury companies accounted for $177 million, or about 98%, of May's total inflows, though that was down sharply from $3.8 billion in April. Non-Bitcoin assets made only marginal contributions, with small inflows from ZCash, Story and Sui, while Litecoin recorded a $1.89 million outflow. The May figure was roughly 93% below the monthly average for the first five months of 2026.
The slowdown signals a structural repricing of publicly traded crypto treasury firms as spot ETFs offer institutions a cheaper, more liquid way to gain crypto exposure, compressing the net asset value premiums these companies once commanded.
ETFs and NAV compression reshape the math
Arthur Firstov, chief business officer at payments infrastructure firm Mercuryo, said blaming ETFs alone "oversimplifies" the market dynamics. Company-specific factors such as equity dilution, operating costs, balance sheet losses and broader risk sentiment also weigh on whether treasury firms trade at premiums or discounts.
"ETFs do impose a structural constraint that didn't exist before," Firstov said. "They set a permanent ceiling on what premium treasury firms can charge. Every quarter now requires fresh justification for that markup."
Staking becomes a revenue lifeline for Ether treasuries
For treasury firms holding Ether and other proof-of-stake assets, staking has emerged as a partial solution. Staking infrastructure provider Everstake reported last month that staking accounted for an average of 60% of reported revenue among six Ether treasury firms that disclosed staking-related income.
Firstov said staking can improve capital efficiency by creating programmatic cash flow, but it cannot fix weak corporate structures. Companies with high operating costs or continuous dilution "cannot math their way out with a 3% to 5% staking yield," he said.
The pressure on DAT companies comes as the broader crypto market faces headwinds. Bitcoin traded near $73,645 as of publication, with the market digesting the implications of reduced institutional capital formation through treasury vehicles. The shift toward active yield generation may accelerate consolidation among treasury firms or force more companies to pivot toward staking, DeFi strategies and validator infrastructure to justify their equity premiums.
This article is for informational purposes only and does not constitute investment advice.
