Bitwise CIO Highlights Need for Complexity in Crypto Treasury Strategies to Stay Competitive Translation: Bitwise CIO Highlights Need for Complexity in Crypto Treasury Strategies to Stay Competitive

Companies with crypto assets on their balance sheets (DAT) need to adopt sophisticated strategies; otherwise, they will ultimately lose out to ETFs. This was stated by Matt Hougan, the investment director at Bitwise.

*“Acquiring cryptocurrencies and holding them on balance sheets is no longer a challenging task. It was once difficult, but that’s not the case anymore. If DATs limit themselves to this basic strategy, it would be more beneficial for users to invest through exchange-traded funds,”* he explained.

According to the expert, the situation is similar for companies providing staking services. ETFs have already incorporated such features, including Bitwise, which launched an investment product at the end of October that allows for locking coins to earn rewards.

The company’s exchange-traded fund based on Solana has attracted $282 million, with positive inflows observed for the seventh consecutive trading session.

Hougan emphasized that to create added value, crypto treasuries should start exploring complex strategies such as participation in DeFi, smart loans, and options trading.

*“Not all these ideas are necessarily good, and not everyone will be able to implement them successfully. They are complex, but with proper execution, there is a chance of reaping rewards for the effort. DATs that opt for the easy route of merely buying and holding crypto assets are going to trade at a discount to their value,”* he added.

Many experts have echoed Hougan’s viewpoint. Artemis researcher Mario S. also highlighted the significance of transparency and systematic approaches.

*“They could sell covered calls when implied volatility exceeds a certain percentage, or issue shares when the mNAV surpasses a specified level. […] The more systematic and transparent this approach is, the better. Investors will be able to conduct comparative analyses of DATs alongside spot ETFs and other instruments,”* he noted.

Another analyst from Artemis, known as Anthony, added that the strategy should depend on the underlying asset. He indicated that within the Bitcoin ecosystem, a promising direction could be finding ways to generate income or acquire capital through non-debt methods, such as issuing preferred shares.

*“Regarding Ethereum and Solana, I believe the key to success will be the ability of the treasury management teams to effectively integrate into the DeFi ecosystem and creatively generate income beyond simple staking,”* he emphasized.

As a case in point for an effective crypto treasury, Hougan mentioned Strategy, which employs debt instruments to enhance its positions.

*“Trying to raise $60 billion in equity to buy Bitcoin through a corporate structure—now that’s truly challenging,”* the expert stressed.

At the time of writing, Michael Saylor’s company manages 641,205 BTC valued at over $66 billion. The firm is the largest corporate holder of the first cryptocurrency worldwide.

A total of 207 companies have joined the strategy of accumulating digital gold.

70 firms have added Ethereum to their balance sheets, gathering a total of 6.14 million ETH worth $20.7 billion (5% of the total cryptocurrency supply).

Additionally, 10 companies have included Solana in their reserves, managing 15,998 SOL valued at $2.5 billion (2.8% of the total coin supply).

Some are also accumulating BNB, Chainlink, Dogecoin, Hyperliquid, Sui, and many other assets.

It is worth noting that in early November, the DAT company Sequans sold 970 BTC to pay off a debt, leading to a 16% drop in the company’s stock.