As the crypto market continues its volatile journey, a new breed of companies, known as digital asset treasury (DAT) firms, are quietly setting the stage to become the powerhouses of tomorrow. Ryan Watkins, co-founder of Syncracy Capital, recently shed light on this emerging phenomenon. In a blog post dated September 23, Watkins proposed that these firms could mature into long-lasting economic engines reminiscent of traditional giants like Berkshire Hathaway.
Beyond Speculation: The DAT Evolution
Digital asset treasury firms aren’t just about speculative trading anymore. While the crypto world often buzzes with short-term hype—what’s the next big token, who’s announcing fundraising—Watkins urges a broader vision. He suggests that a select group of these DATs could transition into publicly traded entities with substantial mandates to deploy capital, operate businesses, and actively participate in governance.
These firms, which collectively hold an impressive $105 billion in assets across major cryptocurrencies like Bitcoin and Ether, have the potential to do much more than hoard tokens. They could become vital components within their respective ecosystems, driving finance and governance. For instance, on the Solana blockchain, firms that stake more SOL can enhance transaction efficiency and capture spreads more effectively. Similarly, on platforms like Hyperliquid, increased staking can lead to lower user fees and improved take rates.
The Power of Programmable Money
One of the key advantages that DATs have over traditional crypto strategies is their ability to leverage programmable money. While companies like MicroStrategy focus solely on Bitcoin—a non-programmable asset—DATs have the flexibility to hold tokens like ETH, SOL, and HYPE, which can be utilized on smart contract platforms to generate additional value.
Watkins highlights that these tokens can be staked for fees, supplied as liquidity, or used to participate in governance, turning treasuries into productive balance sheets. By acquiring ecosystem primitives, such as validators or RPC nodes, DATs can ensure that their assets are not just sitting idle but actively contributing to the growth and stability of their networks.
Structurally Unique: The Hybrid Model
Watkins compares successful DATs to a hybrid of several familiar financial models. They combine the permanent capital of closed-end funds and REITs, the balance-sheet orientation of banks, and the compounding ethos of Berkshire Hathaway. However, what sets them apart is that returns are accrued in crypto per share, rather than through management fees, aligning them more closely with their underlying networks than traditional asset managers.
To support their growth, DATs can utilize financial tools like common equity, convertibles, and preferreds, providing them with the flexibility to expand their balance sheets. On-chain yields offer a mechanism to manage this funding over time, ensuring sustainability and scalability.
Winners and Risks: Navigating the Future
While the potential for DATs is immense, Watkins cautions that not all will succeed. The landscape will likely see consolidation and fierce competition, with some first-generation firms—those heavy on financial engineering but lacking operational substance—fading away as market conditions stabilize.
The survivors, according to Watkins, will be those that exhibit disciplined capital allocation and operational expertise. These firms will need to recycle cash flows into token accumulation, product development, and ecosystem expansion. Over time, the best-managed DATs could indeed transform into the Berkshire Hathaways of their respective blockchains.
However, this evolution won’t be without its challenges. As premiums potentially flip to discounts, some firms may resort to risky balance-sheet maneuvers. The key to enduring success will be a balanced approach that combines strategic risk-taking with sound financial management.
The Road Ahead
In conclusion, the rise of digital asset treasury firms marks a significant shift in the cryptocurrency landscape. As these companies continue to grow and evolve, they hold the promise of transforming from speculative entities into enduring economic engines. By leveraging programmable money and adopting a hybrid financial model, they have the potential to reshape the way we think about value creation in the digital age.
While the road ahead is fraught with challenges, the opportunities for DATs are substantial. If they can navigate the complexities of the crypto market and build strong operational foundations, they might just become the financial titans of tomorrow, driving innovation and stability within their ecosystems. As the story of these firms unfolds, one thing is clear: the future of finance is being rewritten, one token at a time.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
