Corporate treasuries are going digital. While traditional companies hold cash and bonds in their reserves, a new breed of public companies are building their entire businesses around owning digital assets. These are Digital Asset Treasury Companies (DATCOs), and they're reshaping how institutions access the crypto market.

Instead of buying Bitcoin directly through unfamiliar crypto exchanges, investors buy shares on major stock markets in a company whose main job is to accumulate and manage Bitcoin professionally, giving them exposure while the complex operations are left to expert managers.

The rise of DATCOs has defined 2025, with these firms now collectively holding around $100 billion in digital assets.

How DATCOs Work

Digital Asset Treasury Companies operate differently from traditional investment firms. Rather than managing other people's money across various assets, DATCOs raise capital specifically to buy and hold digital assets on their own balance sheets.

A DATCO goes public, raises money from investors, and uses those funds to purchase digital assets like Bitcoin, Ethereum, or TON. The company's stock price generally moves with the value of its crypto holdings, often trading at a premium because investors value the professional management and regulatory compliance.

Modern DATCOs generate additional revenue through:

• Staking rewards - Earning yield by securing proof-of-stake networks

• Lending programs - Loaning crypto assets to institutions for interest

• Strategic partnerships - Working with blockchain projects and DeFi protocols

The most sophisticated treasury companies also use advanced funding mechanisms. They issue convertible bonds or sell new shares when trading at premiums, allowing them to acquire more crypto per dollar raised.

Why Digital Asset Treasuries Exist

DATCOs tackle real challenges for different types of investors. For institutions, regulatory restrictions often prevent the direct purchase of cryptocurrencies. A pension fund, for example, might not be able to easily acquire Bitcoin, but it can invest in a publicly traded company intent on holding and acquiring Bitcoin.

For retail investors, DATCOs offer professional-grade security and compliance without needing to manage private keys or navigate complex DeFi protocols. Investors can get exposure to highly-sought after digital assets through simple, traditional brokerage accounts.

The companies also serve as advocates for their chosen digital assets. MicroStrategy (now called Strategy) has become Bitcoin's most vocal corporate champion, while newer companies are emerging to support Ethereum, Solana, and other ecosystems.

When a publicly traded company with hundreds of millions in market cap commits to a digital asset, it signals institutional confidence that encourages broader adoption.

Real Examples

Strategy (formerly MicroStrategy) remains the sector leader, holding over 632,000 Bitcoin worth approximately $46.5 billion at time of publication. Its aggressive strategy involves raising capital during market dips and maintaining moderate leverage, viewing Bitcoin as superior to cash reserves.

Bit Digital took a different approach, pivoting from Bitcoin to focus entirely on Ethereum. It now holds over 121,000 ETH and generates additional returns through staking, earning around 4% annually while benefiting from price appreciation.

SharpLink Gaming represents the diversified approach, holding Bitcoin, Ethereum, and Solana while actively participating in DeFi protocols for yield generation. Its gaming background also positions them to benefit from bullish blockchain gaming trends.

The sector continues to expand beyond these major players, with companies like ETHZilla raising $425 million specifically for Ethereum accumulation and staking strategies.

TON Strategy Co

TON Strategy Co was founded as the first publicly traded company dedicated to holding and managing Toncoin (TON) as a corporate treasury asset. Holding over $713 million worth of TON --- more than 5% of the total supply --- the company serves as both a major investor and active network validator.

Its approach combines price appreciation with staking rewards, currently earning 4.86% annually while compounding returns back into additional TON purchases. This dual-income model helps smooth volatility while supporting network security through validation services.

The company's recent $558 million private placement was oversubscribed by 110%, demonstrating strong institutional interest in TON's ecosystem exposure. As a major validator on TON's Proof-of-Stake network, TON Strategy Co directly contributes to blockchain security and performance.

How Users Benefit from Digital Asset Treasuries

DATCOs create value beyond their immediate shareholders.

For everyday users, institutional adoption typically leads to better infrastructure, improved regulatory clarity, and increased utility. When major companies hold significant amounts of a cryptocurrency, developers and businesses are more likely to build applications and services around it.

Companies like Strategy have become prominent voices for Bitcoin adoption, while TON Strategy Co. actively promotes TON's ecosystem and its integration with Telegram.

Treasury companies also contribute to network security, particularly in proof-of-stake systems. TON Strategy Co's role as a major validator helps keep TON Blockchain secure and efficient for all users.

Revenue Models

Modern DATCOs generate income through multiple channels, making them more resilient than simple buy-and-hold strategies. Staking has become particularly important, with Ethereum-focused companies earning 3.5-4.8% annually and Solana treasuries achieving 5-8% returns through delegation.

Some companies also participate in DeFi lending, earning interest by providing liquidity to institutional borrowers. Others sell covered call options, collecting premiums while potentially limiting upside - a strategy that works well in stable or slowly rising markets.

At-The-Market (ATM) programs allow companies to sell new shares gradually when trading at premiums, acquiring more cryptocurrency per dollar without significant dilution. Private Investment in Public Equity (PIPE) deals also provide access to institutional capital at negotiated prices.

These revenue streams help companies weather market downturns while continuing to accumulate assets during attractive buying opportunities.

The Future of Digital Asset Treasuries

Industry analysts predict continued growth through 2028, with institutional adoption accelerating as regulatory frameworks mature. The US Treasury Department forecasts the global stablecoin market potentially reaching $2 trillion by 2028, while digital asset market revenues are expected to hit $110.2 billion by 2026.

However, the next bear market will likely drive significant consolidation. Companies with strong balance sheets and diversified revenue streams are positioned to acquire distressed competitors, potentially concentrating the sector among fewer, better-capitalized players.

Conclusion

Digital Asset Treasury Companies have evolved from experimental ventures to vital tools enabling institutional cryptocurrency adoption. They provide professional management, regulatory compliance, and amplified exposure while contributing to ecosystem development and network security.

For TON's ecosystem, companies like TON Strategy Co demonstrate how dedicated treasury vehicles can support blockchain growth while providing investors with strategic exposure to emerging digital economies. As the space matures, these companies will likely play increasingly important roles in connecting traditional finance with the expanding digital assets space.