Mike Novogratz, one of the cryptocurrency-friendly billionaires, spoke about Bitcoin and altcoins at his company’s earnings call.
Galaxy Digital CEO Michael Novogratz said that the rapid increase in the number of companies adding cryptocurrencies to their balance sheets has reached its peak.
This trend may now slow down, Novogratz said.
“We’ve probably seen the peak in treasury company issuance,” Novogratz said today at Galaxy Digital’s second-quarter 2025 earnings call. “The question now is: Which of the existing companies will become giants?”
The more friendly regulatory environment in the US has seen a surge in the number of crypto treasury companies in recent months. These companies raise funds through IPOs and hold Bitcoin and other digital assets on their balance sheets. While early-stage companies followed Michael Saylor’s Bitcoin-focused model, newer startups have begun adding Ethereum, Solana, and other smaller-cap crypto assets to their portfolios.
Novogratz noted that Ethereum already has two major institutional holders, Tom Lee’s BitMine and Joe Lubin’s SharpLink, and predicted continued growth. However, he added that new entrants may “have trouble breathing.”
Galaxy Digital currently works with more than 20 crypto treasury investment firms. The company earns management fees by managing their crypto assets. Novogratz claimed that this collaboration has brought approximately $2 billion in assets to their platform, providing “recurring revenue.”
According to the company’s second-quarter financial results, Galaxy earned net income of $30.7 million this year, compared to a loss of $177 million in the same period last year. Adjusted earnings per share came in at $0.08, falling short of analyst expectations.
Novogratz sees crypto treasury companies and exchange-traded funds (ETFs) as a way for hedge funds to enter the sector without directly owning tokens. In the long run, he believes traditional financial institutions will also transition to blockchain-based market structures.
However, tokenization, the process of transferring traditional assets (such as stocks) to the blockchain, remains an unresolved issue. Novogratz cited the “Project Crypto” initiative spearheaded by SEC Chairman Paul Atkins as an example, noting that US markets are being explored for potential blockchain migration.
