The Proliferation of Cryptoasset Treasury Strategies in Public Markets | Insights

Key Points

Companies are increasingly viewing bitcoin and other cryptocurrencies as strategic reserve assets, establishing dedicated corporate entities to hold cryptoassets on their balance sheets and raising capital specifically to acquire them for reserve.
These entities serve as vehicles through which investors can gain exposure to digital assets while offering investors a regulated entry point into the asset class (through the registration and listing of the entity holding the asset on its balance sheet).
A range of transaction structures is being used to raise capital, including equity offerings, convertible notes, PIPEs and de-SPAC mergers, demonstrating the flexibility of capital markets to support a strategy of long-term digital asset accumulation.
While bitcoin remains the primary focus, treasury strategies are expanding to include ethereum and solana, reflecting broader institutional interest in the digital asset ecosystem.
Companies exploring exposure to digital assets should evaluate how capital market tools can be strategically deployed to support treasury accumulation as part of a broader corporate finance strategy.

The shift in regulatory approach to cryptoassets in recent months, particularly in the U.S. (see “A Plan To Authorize and Regulate Stablecoins Could Soon Become US Law”), has resulted in more companies and investors beginning to view bitcoin and other cryptoassets as part of their strategic growth plans. In line with this evolution, many companies are establishing dedicated entities to hold cryptoassets — most commonly bitcoin — on their balance sheets, giving investors access to such assets through traditional equity markets.

Companies such as MicroStrategy (doing business as Strategy), Twenty One Capital and others are raising capital not just for operations but with the specific intent of acquiring cryptoassets as reserve assets. These transactions are structured from the outset to support long-term accumulation, signaling a new model in which capital markets are used directly to fund cryptoasset treasury strategies.

Interest in this model is growing. According to analysts at Bernstein Private Wealth Management, public companies globally could allocate as much as $330 billion to bitcoin over the next five years, compared to about $80 billion today. This underscores cryptoassets’ increasing importance in corporate finance and their rising presence in institutional investment strategies.

Cryptoassets are appealing to corporate treasuries for several reasons. They:

Offer long-term appreciation potential.
Act as a hedge against inflation and fiat currency devaluation.
Signal a forward-thinking posture to investors.

For many companies, holding cryptoassets supports diversification, balance sheet optimization and direct exposure to the digital asset economy.

Diverse Transaction Types

To finance these strategies, companies are using a variety of transactional structures, including:

Public equity offerings.
Convertible notes.
De-SPAC mergers.
Private investments in public equity (PIPEs).

Among these, convertible notes have emerged as a particularly attractive structure due to their hybrid nature: They provide investors with downside protection through debt treatment together with the potential for equity-linked upside, especially where cryptoasset accumulation and appreciation may improve stock performance. In some cases, the notes are secured by the underlying cryptoassets, providing added credit support.

These instruments are proving especially effective for newly public or high-growth issuers seeking to rapidly scale crypto treasuries through capital-efficient means. In particularly high-demand offerings, some issuers have secured zero-coupon convertible notes.

MicroStrategy remains the leading example, having consistently issued both equity and convertible debt to grow its bitcoin holdings. In early 2025, MicroStrategy expanded its funding methods to include preferred shares, specifically issuing “perpetual strike preferred stock” and a so-far unique “perpetual strife preferred stock” with fixed dividend rates in perpetuity. This diversification of capital sources further underscores the multifaceted approach to accumulating bitcoin as a primary treasury asset that is gaining traction in the broader market.

For instance, in April 2025, Twenty One Capital announced a $3.6 billion de-SPAC merger, backed by Tether, SoftBank and Cantor Fitzgerald, and raised over $640 million in a PIPE that included both equity and convertible senior notes secured by bitcoin.¹

Other notable transactions include:

Trump Media & Technology Group’s $2.5 billion offering split between equity and secured convertible notes.
Nakamoto Holdings’ $710 million PIPE in connection with its merger with KindlyMD.
GameStop’s announced $1.75 billion convertible note issuance.
Mercurity Fintech Holding’s $800 million financing plan.

Importantly, the trend is no longer limited to bitcoin. SharpLink Gaming raised $425 million, led by ConsenSys, to support an ethereum-focused treasury strategy. DeFi Development Corp. and Classover Holdings have each announced multibillion-dollar capital raises to build solana-based corporate treasuries.

Potential Differentiation and Consolidation

The rapid increase in the number of cryptoasset treasury companies may require the development of clear differentiators for investors. Key factors beyond the specific digital currency (or currencies) held may include:

The scale of a company’s cryptoasset holdings.
The management team’s expertise in and reputation for navigating the digital asset market.
The purchasing power of the founder shareholders backing the company.
Any proprietary underlying technology that provides a competitive edge.

This dynamic could well drive consolidation, as companies better positioned according to these differentiators acquire other players.

Another potential evolution in this space involves the strategic adoption of multicurrency treasury strategies. By potentially mitigating single-asset volatility and capturing broader growth across the digital asset economy, such diversified strategies may appeal to investors seeking comprehensive cryptoasset exposure through traditional equity markets.

As the market for cryptoasset treasury companies continues to evolve, companies considering cryptoasset exposure should evaluate the range of available financing options as part of a broader capital markets strategy. This includes assessing how various transactional structures might best align with their treasury management goals, with an eye toward differentiation in a competitive landscape and positioning for potential market consolidation.

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1 Skadden advised Tether in this transaction.

This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.