$100 Billion in Bitcoin and Ethereum Locked Up by 160 Public Companies
The crypto market in 2025 is riding a new wave of optimism. Capital is flowing strongly into digital assets, thanks to reduced macro uncertainty, institutional inflows, and sustained demand for alternative stores of value.
In this context, a new corporate strategy is emerging, with public companies viewing cryptocurrency holdings not as a speculative gamble but as a core balance sheet strategy.
Galaxy Research’s latest report, “ The Rise of Digital Asset Fund Management Companies ,” shows that this phenomenon is no longer an isolated one. Collectively, these digital asset fund management companies (DATCOs) hold more than $100 billion in Bitcoin, Ethereum, and other tokens, marking a structural shift in how corporations allocate capital.
Over $100 Billion in Corporate Crypto Reserves
DATCOs reportedly control about 791,662 BTC, worth about $93 billion, and 1.31 million ETH, worth about $4 billion. These holdings represent nearly 4% of the Bitcoin supply and 1.1% of the Ethereum supply. The size of these holdings is on par with some national reserves, showing how deeply digital assets have penetrated corporate finance.
Bitcoin remains the dominant asset, but more and more DATCOs are expanding to Ethereum and other Layer 1 tokens. For treasuries holding large amounts of Ether, staking provides a return on idle assets, turning corporate balance sheets into passive income generators.
Meanwhile, altcoin-based DATCOs, such as SharpLink Gaming, BitMine, GameSquare, and others, are differentiating themselves with treasury programs that increase returns far beyond capital appreciation.
Strategic Capital Deployment
DATCOs operate differently than passive investment vehicles like ETFs. Many funds raise capital through mark-to-market (ATM) programs where their shares trade at a premium to their net asset value, allowing them to earn more cryptocurrency for every dollar raised. Others use private placements, PIPE transactions, or SPAC mergers to accelerate fund accumulation.
This capital markets arbitrage has proven to be highly profitable. Galaxy highlights companies that have generated billions of dollars in unrealized profits simply by expanding in favorable market conditions.
Expanding footprint and market impact
While the United States remains the epicenter of DATCO activity, the trend is spreading internationally. The United States’ deep access to capital markets has enabled rapid expansion, but global exchanges are now seeing the emergence of similar corporate strategies. This expansion expands liquidity for digital assets and strengthens the link between equity valuations and cryptocurrency prices.
Risks and the Way Forward
The DATCO model is not without its weaknesses. A sudden drop in stock premiums, adverse regulatory changes, or a capital market freeze could lead to forced asset sales. For now, however, their footprint outside of large companies like MicroStrategy remains small compared to the $3.8 trillion cryptocurrency market.
What’s more troubling is that investors are paying much higher prices for these companies’ shares than the actual value of their Bitcoin holdings, sometimes double or even ten times as much. About 160 public companies now hold nearly 1 million BTC, and 35 of them are worth more than $120 million each. New DAT company offerings appear almost daily, adding to the hype.