A Guide on How Crypto Treasury Firms Operate

No one foresaw a time when public companies would load up their balance sheets with cryptocurrencies. Everyone wants to be the first to give their customers exposure to this digital asset class. Today, entities that buy cryptocurrencies in bulk have a new name: crypto treasury firms.

This behavior did not emerge from thin air. Others have seen how Michael Saylor made Microstrategy unforgettable with Bitcoin, and they are trying to find conviction in other cryptos, including Ethereum, XRP, and SUI. Decades ago, companies managed their capital in typical ways. They could funnel funds into relationships with traditional banks, purchase government bonds, and explore other forms of debt. It will surprise you to know that even pension funds are asking about digital assets.

As this shift continues, crypto treasury firms realize that managing crypto treasuries is different from managing traditional funds. It comes with fresh rules, more risks, and higher stakes. Your assets can experience 40% price changes in any direction within 24 hours. What do these mean? Digital assets demand unique approaches in terms of skills, opportunities, and tools.

In this article, we will explore crypto treasury firms and their operations.

Let’s dive in!

What are crypto treasury firms?

Crypto treasury firms are businesses that are making cryptocurrencies central to their operations. They make strategic moves to divert significant amounts from their balance sheets into digital assets. To achieve their goals, these firms can raise money through stock offerings or debt servicing. The goal is to give crypto exposure to current and potential investors through a publicly traded and regulated company. They can satisfy the appetite of investors for an emerging asset class and assure them of safety for their capital investments.

By transitioning into holding cryptocurrencies, treasury firms differ from traditional corporations. They engage in yield opportunities such as staking, lending, and borrowing to earn passively. Investors can cast any regulatory concerns they could encounter from sole investments on these companies. To give context to the treasury firms’ commitment, MicroStrategy held 59% of its valuation in cryptocurrencies as of March 2025. This status has raised some concerns about their market value.

How do they work?

As earlier established, most, if not all, crypto treasury firms started as traditional corporations. With this switch comes a change in approach for operations. Day-to-day running will follow new patterns on the following frontiers;

Real-time Monitoring

Cryptocurrency markets never sleep. Traditional treasuries rely on business hours. The markets can close, and you have the weekend to restrategize and figure out ways forward. Take a breather if you like. Not with cryptocurrencies.

The markets operate 24 hours,7 days a week, 365 days a year. Trump can make a statement that pisses off Russia, and that is why Bitcoin is on a downtrend after looking up earlier. This single occurrence has ripple effects. Many other events can occur together, affecting price and sentiment.

This fastidious sector requires eyes to catch every movement. Crypto treasuries employ market monitoring systems. Timely updates equip teams to make quick decisions. There aren’t many board meetings as big moves happen in minutes.

Regulation

The playbook is still in writing for cryptocurrencies. While the regulatory frameworks of traditional treasuries can be complex, they provide clarity on what to do and when to do it.
Different regions have different views on crypto. A legal approach in one country can lead to court appearances in another. The laws affect taxation, as some places offer milder taxation on cryptocurrency holdings than others. The elephant in the room is one question: “Is cryptocurrency a security?”

Treasury teams step up their compliance game to navigate the blurred lines in crypto regulation. Since there’s no playbook, they must keep pace with evolving compliance and navigate unclear matters on the go. This approach must include contingency plans for sudden changes in the current regulatory stance.

Security

With cryptocurrencies, security falls on the shoulders of the treasury firms. In a traditional setting, they share the burden with banks and brokerage firms. The insurance cover from partners enables efficient asset recovery. Here, you are your own bank.

This change in status means crypto treasury firms need Fort Knox-level security. They must invest in top-of-the-range hardware and software to guard funds. Some safety measures include Multi-Party Computation (MPC), Hardware Security Module (HSM), and flexibility for hot and cold wallets. There are companies in the business of managing crypto treasuries, and firms expect certifications from these managers to boost confidence for maximum protection.

Crypto treasury firms eliminate traditional issues. However, they introduce unique challenges. The type that if you fall victim, you’d never recover.

Liquidity

A market crash is very likely with cryptocurrencies. Maybe a whale dumps or a hacker drains a blockchain. Such an event can dry up trading volumes and make liquidity disappear. During illiquid stretches, large orders can’t reach fulfillment. The reverse is the case in traditional treasuries. Bottomless liquidity allows a large buy or sell order to proceed without hitches.
Liquidity issues tell treasury firms to take more calculated risks. They’d need to hold more liquid assets than usual to meet financial obligations, especially when the market is under duress.

Volatility

Cryptocurrencies swing high and low. These movements challenge the average Joe’s opinion on stability. In traditional environments, the biggest worry is interest rates. On a bad day, a portfolio can dip by 2%. A typical day in crypto can include a token going as low as 20%! Sometimes, stablecoins can fall from their pegs and trade at lower prices.

This unprecedented nature informs crypto treasuries to prepare for the impossible. Adjusting to normal market conditions is nonexistent since the market moves distinctly. Firms must carefully consider how much they are allocating to buying crypto. To minimize risks, they organise fundraising rounds for this purpose. Even a small cryptocurrency investment can have a significant impact on a portfolio.

Innovation

Things switch up easily where crypto is concerned. The speed of innovation is unbelievable. See how many blockchains exist today. When did Satoshi unveil the Bitcoin whitepaper? Today, whitepapers introduce blockchains in droves.

In a traditional environment, evolution is gradual. Financial instruments must first undergo scrutiny. Stakeholders have ample time to familiarize themselves with the new regulation. Innovation is predictable.

Crypto treasury firms must learn to adapt and find respite in good and bad times. Their knowledge must combine insights about traditional finance and blockchain technology to seek expertise, foster partnerships, and stay ahead of the curve.

Conclusion

Institutional adoption of cryptocurrencies is a vote of confidence that has only grown over the years. It has helped big companies follow the trends while diversifying to attract investors’ interest in the digital asset class. Since Microstrategy took a bet on Bitcoin, citing dwindling returns from traditional cash reserves, other companies have found ways to act as proxies for cryptocurrency exposure.

Other crypto treasury firms include Gamestop, Vivopower, and Metaplanet. Interestingly, many have recorded enormous year-over-year valuations, taking their worth to new highs. To keep momentum, crypto treasury firms employ unique approaches to this investment.
We can only expect more traditional enterprises to morph into crypto treasury firms soon.

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