Omid Malekan, professor at Columbia Business School, has accused digital asset treasury (DAT) companies of intensifying the decline in cryptocurrency prices. According to him, only a handful of these firms create genuine value — while the majority operate as get-rich-quick schemes that undermine market stability.
Treasury firms fueling the sell-off
Malekan explained that the recent crypto market slump isn’t driven solely by macroeconomic factors, but also by the actions of companies managing digital treasuries.
“Any analysis of why crypto assets continue to lose value must consider the role of DAT firms,” he wrote on X (formerly Twitter).
He described these structures as a “mass exit mechanism” that has accelerated the drop in asset prices rather than cushioning it.
Only a few players, he noted, truly aim to build sustainable value — and they can “be counted on one hand.” The rest, according to Malekan, use the concept of digital treasuries primarily as a vehicle for speculative enrichment.
Excess leverage and debt pressure
Many of these companies, he argued, have raised millions in investor capital without clear long-term strategies. Malekan compared their business models to public firms that rely heavily on debt, noting that legal, banking, and listing costs are often financed with borrowed funds — amplifying leverage and increasing collapse risks.
DAT firms, he added, frequently use leveraged positions to buy tokens. When markets fall, they are forced to sell those assets, worsening downward pressure. Their reliance on staking and lending protocols further adds to systemic vulnerabilities across DeFi markets.
“The worst damage to the crypto sector came from firms that organized mass exits from supposedly locked tokens,” Malekan warned, likening this phenomenon to “the gangrene of crypto” that erodes investor trust.
Concentration among large holders
Data from Bitwise Asset Management show that as of October 2025, 172 companies collectively held over 1 million BTC worth about $117 billion. Additionally, 70 organizations held around $20 billion in Ethereum on their balance sheets.
Analysts expect the digital treasury market to consolidate around a few large, better-capitalized players over time, while smaller ones will pivot to other Web3 sectors.
Earlier, Bitwise CIO Matt Hougan suggested that the crypto market may be nearing its bottom, as retail investors show signs of exhaustion and capitulation.
