The boom of cryptocurrency financial companies may have peaked, according to Novogratz.

## Suggesting the end of the boom

Michael Novogratz, CEO of Galaxy Digital, suggested on August 6 during the Q2 earnings call that the peak of the cryptocurrency treasury (finance) company establishment boom has passed. He stated, "It is highly likely that the new establishment of treasury companies has peaked," indicating that the focus will shift to the growth competition among existing companies.

Cryptocurrency treasury companies have experienced rapid growth against the backdrop of an improving regulatory environment in the United States. These companies raise funds in the public market and adopt strategies to allocate part or all of their reserves to cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).

Numerous publicly listed companies such as Strategy, Metaplanet, GameStop, Trump Media, Sharplink Gaming, Bitmain, and CEA Industries have entered the market. The assets held range from Bitcoin, Ethereum, Solana, Litecoin, BNB, to XRP.

In the Ethereum sector, two major companies have already emerged, with Bitmain, chaired by Tom Lee, and SharpLink, led by Joe Lubin, leading the ETH treasury. While Novogratz predicts continued growth for both companies, he expressed that newcomers will find it "difficult to attract attention."

He assessed that "the impact of the strategy on the entire Bitcoin ecosystem is immeasurable" and emphasized that the "monsterization" of existing companies is an important theme. He also pointed out that the investor base in the stock market is far larger than that of the traditional cryptocurrency market.

Galaxy Digital currently provides asset management services to over 20 treasury companies, with the total assets under management on the platform reaching approximately $2 billion. Mr. Novogratz stated, "It is expected to continue to grow as a source of recurring revenue," revealing a policy to strengthen partnerships with treasury companies.

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