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 moving away from speculative asset holding to an active treasury management model. Traditionally, corporate treasuries in crypto simply purchased and held bitcoin as a passive strategy, a practice popularized by MicroStrategy. However, as venture capital funding declines, with investments dropping to their lowest since 2020, DATCOs are stepping in to utilize corporate treasuries as productive capital engines. By actively deploying digital assets into staking, validator operations, and ecosystem development, these companies aim to not only diversify their holdings but also generate on-chain yield and contribute to the infrastructure of blockchain networks. This shift represents a broader evolution in corporate finance within the crypto landscape, emphasizing automation, transparency, and regulatory compliance through verifiable on-chain operations, leading to more enduring engagement with digital assets than traditional speculative models could provide.

Source 🔗