## When Holding Cryptocurrencies Is Not Enough: What Mike Novogratz Recommends

Galaxy Digital CEO Mike Novogratz has criticized companies that limit themselves to merely accumulating Bitcoin and other digital assets. In his view, such a strategy is becoming increasingly unsustainable in today’s market conditions.

The data shared in his interview on the Anthony Scaramucci podcast appears alarming: nearly 40% of Bitcoin-focused treasuries are trading at a discount to the value of their assets. Even more concerning is the situation of companies that entered the market at the peak of the cycle — over 60% of these holdings acquired crypto assets at prices significantly above current market quotes.

## ETF Competition Shifts the Rules of the Game

The key factor Novogratz points out is the emergence of spot ETFs for Bitcoin and Ethereum. These instruments have radically changed the landscape: retail and institutional investors now have direct access to assets without intermediaries. This has undermined the unique offering of treasuries, which previously positioned themselves as the only way to participate indirectly.

Structural problems are accumulating. If previously companies could attract capital simply by virtue of their crypto holdings, that is no longer enough. Investors now demand a real business model that generates revenue.

## From Storage to Active Business

Novogratz suggests that companies in trouble should rethink their strategy. The first option is to buy back their own shares at a discount if the market valuation has fallen below the value of their assets. This helps maximize value for remaining shareholders.

The second, more ambitious option is to transform the treasury into a real business. Concepts like neobanks, payment systems, or other fintech solutions based on crypto assets could be a salvation. Such an approach would allow companies to generate their own cash flow instead of relying on the revaluation of purchased Bitcoin.

Galaxy Digital’s leader’s comments reflect a deeper industry trend — the era of simple accumulation of digital assets is ending. It is being replaced by a time when companies must prove they can create real economic value.