The Rise of DATCOs: Active Treasuries Are Replacing VC in Crypto

Digital Asset Treasury Companies (DATCOs) are transforming corporate finance in the cryptocurrency sector by evolving beyond the traditional, passive balance sheet strategy of buying and holding assets. With a decline in venture capital funding, DATCOs are now actively deploying cryptocurrencies into staking, validator operations, and ecosystem development, effectively turning corporate treasuries into productive capital engines. Public companies are holding over one million bitcoins, a significant increase, signaling a shift from speculative assets to valuable, utilized capital. This new active-treasURY model allows for real-time risk measurement and transparent operations, appealing to regulators due to its traceability. The interaction between networks and their investors is evolving as DATCOs contribute to network resilience while generating yield. As VC funding diminishes, DATCOs may become the backbone of a more participatory and sustainable crypto economy, changing how public companies engage with digital assets.

Source 🔗