Digital Asset Treasuries Face a Reckoning

Executives Forecast Consolidation, Diversification, and Revenue Pivots in 2026

The corporate crypto treasury boom that defined 2025 is entering a new phase. After more than 200 new digital asset treasuries launched last year—pushing total corporate crypto holdings above $100 billion—executives now expect 2026 to bring consolidation, business model diversification, and a more discriminating investor base.

The playbook that worked in the first half of 2025 isn't guaranteed to work in the second. Late-year volatility exposed vulnerabilities in the buy-and-hold model, compressing multiples and forcing treasury companies to demonstrate value beyond token accumulation.

The M&A Question

Tyler Evans, chief investment officer at Nasdaq-listed KindlyMD (formerly Nakamoto Holdings), expects market forces to thin the herd.

"2026 will be defined in part by consolidation and M&A," Evans said. "The market will have a clearer sense of the winners."

KindlyMD completed its merger with Nakamoto Holdings in August 2025, raising $540 million to execute a Bitcoin treasury strategy. The deal represented one of the largest PIPEs for any public crypto-related transaction at the time.

But not everyone expects widespread consolidation. Brian Rudick, chief strategy officer at Upexi—which holds over 2 million SOL valued at approximately $334 million—argues the economics don't favor traditional M&A.

"I don't believe there will be much M&A among DATs, as sellers lack an incentive to sell below 1.0x mNAV, since they can sell their assets into the market at par," Rudick said. "At the same time, buyers lack a reason to acquire a DAT above 1.0x mNAV, because they can buy those assets directly in the market."

Multiple of net asset value (mNAV) measures how a company's market capitalization compares to its crypto holdings. When DATs trade below 1.0x mNAV—as many now do—it signals the market values the company at less than its underlying assets.

Rudick sees a different dynamic emerging: "I wouldn't be surprised to see activist funds get involved in treasury companies in 2026, given the substantial discounts many of them are trading at."

From Accumulation to Revenue Generation

The pure accumulation model is losing steam. Companies that stockpiled tokens and watched multiples compress are now scrambling to build revenue streams independent of token price appreciation.

Hyunsu Jung, CEO of Hyperion DeFi—the first U.S. publicly listed HYPE treasury—argues investors will demand more than passive holding.

"There will be continued scrutiny on what makes DATs valuable and it should come down to how they can directly contribute to the growth of their ecosystem while earning revenues to do so," Jung said.

Hyperion DeFi has already moved beyond the basic playbook. The company launched a custom onchain perpetual futures market through a partnership with HyperEVM protocol Felix, establishing what Jung describes as five distinct business lines that "generate cash revenue and are largely decoupled from the price action of the HYPE token."

Other treasuries are experimenting with similar approaches. Tom Lee's BitMine—the second-largest public crypto treasury with over 4 million ETH valued at approximately $13 billion—generates revenue through Ethereum staking. Upexi stakes substantially all of its Solana holdings, earning an estimated 7-8% annual yield.

The Retreat Cases

Not every company is doubling down. The Peter Thiel-backed ETHZilla sold $74.5 million in Ethereum in December to pay down debt and announced a pivot to real-world asset tokenization, abandoning its digital asset treasury model entirely.

"In the future, the company believes its value will be driven by revenue and cash flow growth from our RWA tokenization business," ETHZilla said, discontinuing its mNAV dashboard in the process.

The David Beckham-backed Prenetics Global halted its Bitcoin treasury strategy on December 4, choosing to redirect capital toward its IM8 wellness brand, which generated over $100 million in annualized recurring revenue within 11 months. Prenetics will retain its existing 510 BTC but won't pursue further acquisitions.

These exits highlight the challenge facing smaller DATs: without scale, diversified revenue streams, or compelling ecosystem participation, the model becomes difficult to sustain during prolonged price weakness.

Regulatory Tailwinds

All three executives expect regulatory clarity to accelerate institutional adoption in 2026.

The Digital Asset Market Clarity Act, which passed the House with bipartisan support in July 2025, would establish clear jurisdictional boundaries between the SEC and CFTC. The Senate is expected to take up companion legislation in early 2026.

"We are supremely bullish on Solana as finance continues to move onchain, especially with a major catalyst in the potential passage of the Clarity Act," Rudick said.

Jung sees broader implications for institutional capital flows: "Crypto is finally having its institutional adoption moment. As more real-world assets become tokenized, the core blockchain infrastructure supporting that shift will have significantly greater value-accrual opportunities."

The Differentiation Thesis

The treasury landscape is stratifying. At the top, firms like BitMine and Strategy (formerly MicroStrategy) operate at scale, with access to capital markets, diversified investor bases, and the ability to weather volatility. Strategy holds over 673,000 BTC worth approximately $63 billion; BitMine targets 5% of Ethereum's circulating supply.

Below them, mid-tier treasuries like Upexi and Hyperion DeFi are building differentiated strategies around specific ecosystems—staking yields, locked token discounts, and onchain revenue generation.

At the bottom, smaller entrants face a harder path. Without compelling operating businesses or ecosystem participation, they risk trading perpetually below NAV, vulnerable to activist pressure or forced liquidation.

The companies that survive 2026 will likely be those that answer a simple question: what value do you create beyond holding tokens?

Evans frames the challenge directly: "We expect to see broader diversification in DAT business models, with core operating businesses and financial product offerings integrated into existing treasury strategies."

That's the new baseline. Accumulation alone isn't enough anymore.