Crypto treasuries may consolidate as competition heats up, says Coinbase researcher
Coinbase’s head of investment research, David Duong, said crypto treasuries may soon turn to mergers and acquisitions to grow and stand out in a competitive market.
- Mergers and acquisitions are emerging as a key strategy for firms with crypto treasuries that seek scale and differentiation.
- Share buybacks can support DAT prices but are highly sentiment-driven, and defensive repurchases sometimes fail, as seen with TON Strategy Company.
In a recent interview with Cointelegraph, Coinbase’s head of investment research, David Duong, said mergers and acquisitions could soon become a defining strategy for crypto treasury companies, as the digital asset treasury space enters a more mature phase.
Duong explained that as the current cycle evolves, companies may shift from purely accumulating crypto assets to acquiring competitors in an effort to scale and differentiate themselves. He cited the recent all-stock acquisition of Semler Scientific by Strive Asset Management as an early example of what could become a broader industry trend.
According to Duong, this consolidation could mirror traditional financial cycles, where only a handful of dominant players will remain.
In addition to M&A activity, Duong pointed out how DATs are increasingly exploring yield-generating crypto-native strategies such as staking and DeFi looping. “And there’s still a lot more they can do here. I think the future will depend a lot on what happens with regulatory shifts, liquidity and market pressures to get a clearer sense of where this could all go long-term.”
Why buybacks aren’t a guaranteed win for crypto treasuries
This shift toward consolidation comes as DAT firms increasingly compete for dominance over specific tokens. Duong and Coinbase researcher Colin Basco highlighted in a recent report that the industry has entered a “player-vs-player” phase, where firms are leveraging both size and various financial maneuvers to stand out.
A clear example of this trend is the surge in share buybacks among treasury companies over the past few weeks. For example, Trump Jr.-linked media firm Thumzup expanded its buyback program from $1 million to $10 million, while Solana-focused DeFi Development Corp increased its repurchase from $1 million to $100 million.
However, the impact of such strategies is “very much sentiment-driven,” according to Duong, depending on investors’ confidence in a company’s long-term fundamentals. In some cases, defensive buybacks intended to support share prices have failed to generate positive market reactions, as seen with TON Strategy Company’s recent repurchase, which coincided with a 7.5% decline in shares.
“…if a DAT is using buybacks as a defensive maneuver to reduce its float, but market players think the company retains an efficient capital allocation strategy and transparent funding, then its share price may benefit. Conversely, the reverse is true when the right conditions aren’t met,” Duong said.
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