Analysts talk about crypto treasury companies: a handful of likely to rise to

# Ryan Watkins of Syncracy Capital: Crypto Treasury Firms May Evolve Into Long-Term Blockchain Economic Engines  

Source: Caixin Media  

Caixin Media, September 28 (Editor Zhou Ziyi) — Ryan Watkins, co-founder of Syncracy Capital, believes that cryptocurrency treasury firms that hoard tokens may transform from speculative financial packaging tools into long-term economic engines of the blockchain in the future.  

Digital Asset Treasuries (DATs) are publicly listed enterprises that raise funds to acquire and manage crypto assets on their balance sheets.  

In a blog post and a subsequent related post on X, Watkins stated that the total value of Bitcoin, Ethereum, and other major crypto assets currently held by DATs is approximately $105 billion—a scale that few market participants have fully considered.  

## Watkins’ Core Argument  

A small subset of these DATs may evolve into stable operating entities capable of providing funding support for the networks to which their held tokens belong, managing these networks, and participating in network development.  

## Macroeconomic Trends  

Watkins noted that most current attention is focused on recent trading dynamics, but this focus overlooks broader macro trends.  

He wrote, “We believe that some DATs will evolve into profitable, publicly tradable entities similar to cryptocurrency foundations in the future, with broader functions including capital operations, business development, and governance participation.”  

He added, “Moreover, since some DATs already control a significant portion of token supply, their ‘treasury’ function is no longer merely about storing tokens; they can actually serve as tools for regulating policies and products within the ecosystem.”  

To support this point, Watkins cited several crypto-based examples to illustrate the important role that large-scale holdings play.  

For instance, on the Solana chain, RPC providers and validators that stake more SOL can essentially improve transaction finalization efficiency and the proportion of reward distribution. On the Hyperliquid chain, frontend systems that stake more HYPE tokens can reduce user fees or increase commission rates without incurring additional costs.  

Watkins also explained that these entities are unique in that crypto returns are calculated on a per-share basis rather than through management fees. This makes them more akin to pure investments in underlying networks, rather than traditional asset management institutions.  

He argued that instruments such as common stock, convertible bonds, and preferred stock provide DATs with flexible funding support, enabling them to expand their balance sheets, while on-chain returns help manage these funds over the long term.  

## The “Berkshire Hathaway” of the Crypto Space  

However, he also warned, “Not all DAT projects will succeed.”  

He predicted that many first-generation DATs—those with heavy investments in technical design but lackluster performance in actual operations—will gradually be phased out as market conditions return to normal. Furthermore, as competition intensifies, he expects to see corporate mergers and more innovative financing methods, including some aggressive practices that disregard balance sheet health.  

In his view, the surviving firms will be those capable of both strict capital allocation and operational competence, reinvesting cash flow into asset accumulation, product development, and ecosystem expansion.  

He wrote, “Over time, the best-managed firms may evolve into the ‘Berkshire Hathaways’ of the blockchain space.”  

## Disclaimer  

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