Consolidation Expected to Reshape the Crypto‑Treasury Landscape in 2025
By Cointelegraph — February 28 2026
The crypto‑treasury sector, which saw a sharp decline in 2025 as many firms’ share prices fell below the net asset value (NAV) of the digital assets on their balance sheets, is poised for a wave of consolidation. Wojciech Kaszycki, chief strategy officer at BTCS—a company that provides infrastructure and treasury services for the crypto industry—outlined the forces driving the upcoming mergers and acquisitions in a recent interview with Cointelegraph.
Why Cash‑Generating Operators Have an Advantage
Unlike pure‑play custodians that merely accumulate crypto, a growing number of treasury firms operate businesses that generate recurring cash flow. These include:
- Validator services for blockchain networks, which earn block rewards and transaction fees.
- Public and private credit products that can be tokenized and offered to institutional investors.
Kaszycki emphasized that this steady income stream gives operating companies the financial flexibility to acquire peers that are “treading water” on their crypto holdings—i.e., firms whose market caps have slipped below the value of the assets they control.
“When two companies combine, the sum can be greater than the parts. In a market where most players are trading below NAV, a strategic merger can accelerate recovery,” he told Cointelegraph.
The Role of Tokenized Credit Instruments
Tokenization of real‑world assets (RWAs)—particularly public and private credit—has emerged as a promising revenue source for treasury firms. Kaszycki noted that:
- Credit instruments are among the largest financial products globally, and their blockchain‑based token equivalents can be used as collateral in decentralized finance (DeFi) protocols.
- The next 24 months are likely to see a surge in the issuance of tokenized credit, providing additional yield opportunities and diversifying treasury income beyond pure price appreciation of cryptocurrencies.
Industry data from RWA.XYZ illustrates a growing pipeline of tokenized private‑credit offerings, underscoring the sector’s potential to attract capital from both crypto‑native and traditional investors.
Institutional Recognition and Index Inclusion
Strategy, the world’s largest Bitcoin‑focused treasury company, recently highlighted its suite of credit‑like and fixed‑income products as a rationale for inclusion in MSCI indices. The firm’s filing argues that its diversified securities—ranging from equities to fixed‑income instruments—deliver varying degrees of economic exposure to Bitcoin, making it a suitable candidate for mainstream equity benchmarks.
If MSCI were to add more crypto‑treasury firms, it could:
- Boost legitimacy and visibility of the sector.
- Prompt further capital inflows from index‑tracking funds, raising valuations for companies that have survived the 2025 downturn.
Market Outlook
The consolidation trend is expected to be driven by three interrelated dynamics:
| Driver | Impact |
|---|---|
| Cash‑flow‑positive operations | Enables acquisitions of under‑valued peers, creating larger, more resilient entities. |
| Tokenized credit growth | Diversifies revenue streams and provides new collateral for DeFi lending, attracting institutional participants. |
| Potential MSCI inclusion | Raises the profile of crypto‑treasury firms, encouraging more M&A activity as companies position themselves for index eligibility. |
Analysts caution, however, that the success of any merger will depend on the ability of the combined entity to integrate disparate technologies, manage regulatory risk, and maintain transparent reporting of crypto holdings. Moreover, the broader cryptocurrency market’s volatility remains a macro‑risk factor that could affect the timing and valuation of deals.
Key Takeaways
- Consolidation is imminent: The 2025 market downturn has left many treasury firms undervalued, creating fertile ground for mergers and acquisitions.
- Operating revenue matters: Companies that generate cash from validator services or tokenized credit have a competitive edge in acquiring distressed peers.
- Tokenized credit is a growth engine: The next two years could see a rapid expansion of blockchain‑based credit instruments, offering new yield sources for treasury balances.
- Institutional acceptance could accelerate: MSCI’s interest in crypto‑treasury firms may spur index inclusion, bringing additional capital and legitimacy to the sector.
- Risks persist: Integration challenges, regulatory uncertainty, and crypto‑market volatility could impede consolidation benefits.
As the crypto‑treasury market navigates the aftershocks of the 2025 downturn, strategic consolidation—bolstered by cash‑generating operations and emerging tokenized credit assets—may redefine the industry’s structure and set the stage for a more stable, diversified ecosystem.
Source: https://cointelegraph.com/news/crypto-treasury-companies-consolidate-2026?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
