Digital Asset Treasuries Surpass Venture Funding in 2025

Digital asset treasury (DAT) investments have solidified their position as the primary avenue for crypto capital allocation this year, with companies raising over $15 billion by August, according to The Block. These publicly traded companies are shifting their strategies to establish digital asset reserves, preferring to hold cryptocurrencies instead of traditional cash equivalents. The trend has gained traction, with firms announcing DAT initiatives often seeing substantial increases in their stock prices. For instance, Lion Group's recent announcement of a $600 million treasury facility for Hyperliquid spurred a 20% surge in its share price, showcasing the market's positive response to such strategic moves. Data from The Block Pro shows that while Bitcoin remains the leading asset in these treasuries, Hyperliquid's HYPE token has emerged as a surprising second option, with nearly $1.5 billion invested in HYPE tokens and extra cash set aside for future acquisitions. This trend indicates that companies are beginning to diversify their portfolios beyond Bitcoin, often with the backing of the respective tokens’ foundations. The surge in DAT activities is also impacting the broader crypto investment landscape. Venture capital funding for traditional crypto startups has significantly dropped, with only 856 deals in 2025 compared to 1,933 in the same timeframe last year—a 56% decrease. Well-known crypto VCs such as DCG, Paradigm, and Galaxy have engaged in DAT investments, likely reallocating funds typically reserved for venture deals. This shift reflects institutional investors' belief that DAT strategies offer a quicker way to engage in crypto while enjoying the liquidity of public markets. In July, the monthly peak of approximately $6.2 billion in DAT raises marked the highest single-month total recorded, highlighting the increasing adoption of this investment strategy across public markets. This excerpt is from The Block's Data & Insights newsletter, delivering deep dives into the numbers behind the most captivating trends in the industry. Disclaimer: The Block is an independent media outlet delivering news, research, and data. As of November 2023, Foresight Ventures is a major investor in The Block, which continues to operate independently to provide objective and timely information about the crypto sector.