Bitcoin treasury firms enter a ‘Darwinian phase’ as premiums collapse: Galaxy

Overview

Bitcoin treasury firms are currently experiencing significant challenges as equity premiums decline, leverage shifts negatively, and digital asset token stocks transition to discounts. According to Galaxy, these developments indicate that firms in the sector are entering a critical and competitive phase.

Current Situation

As equity premiums collapse, Bitcoin treasury firms face increasing pressure. This decline in premiums suggests that the value of holdings in these firms is diminishing relative to their actual assets. Additionally, the situation is exacerbated by a shift in leverage, which has turned into a downside for these firms. This means that the borrowed funds that firms previously relied on for growth are now becoming a liability.

Moreover, the market for digital asset token stocks is experiencing a notable change, as these stocks are flipping to discounts. This shift indicates that investors are reassessing the value of these stocks and are less willing to pay a premium for them, further complicating the financial landscape for Bitcoin treasury firms.

Impact on the crypto market

• Bitcoin treasury firms are facing intensified competition due to collapsing equity premiums.
• The shift of leverage into a downside may lead to a reevaluation of risk management strategies within the sector.
• Discounts on digital asset token stocks could signal a broader market adjustment and investor sentiment shift.
• The current environment may influence investment strategies and capital allocation among firms involved in Bitcoin and other cryptocurrencies.
• The challenges faced by these firms could have ripple effects across the crypto market, impacting overall market stability.

Updated: 12/6/2025, 8:28:51 AM