Monthly flows into crypto treasury companies cratered to $180 million in May 2025, the weakest level since October 2024. The figure is down a staggering 95% from April's $4.4 billion and roughly 93% below the average monthly flow from January through May. Bitcoin-linked firms accounted for $177 million of the total, leaving almost nothing for altcoin treasuries.
Why the flows dried up
The post-election boom that saw inflows climb past $12 billion in late 2024 evaporated quickly. After the US election, a friendlier policy backdrop drove a surge, but by early 2025 the pace had cooled. Monthly inflows stayed below $10 billion from January onward and kept slipping. By May, the pipeline had almost shut. Smaller inflows reached ZCash, Story, and Sui, while Litecoin actually saw a $1.89 million outflow — a sign of net disinterest in non-BTC treasuries.
Not just a buy-and-hold game
Galaxy Digital argues the old approach of buying and parking crypto no longer works. Treasury firms need to put assets to work via staking, validator services, DeFi lending, or other active uses. Patrick Ngan of Zeta Network Group said companies holding Bitcoin must show they can do more than park the asset on a balance sheet. Arthur Firstov of Mercuryo added that ETFs now provide low-cost, liquid crypto exposure, making it harder for publicly listed treasury firms to trade at a premium. Firstov noted that staking can help proof-of-stake treasuries produce revenue, but it cannot fix weak operations, dilution, or balance-sheet losses.
Hybrid strategies emerge
Grant Cardone linked Bitcoin with multifamily housing in a hybrid treasury structure, using rental income and property gains to support more BTC buying. The idea — combine real estate cash flow with crypto exposure — hasn't caught on at scale, but it reflects a broader search for yield. Treasuries that just hold tokens are looking increasingly obsolete.
With rates still elevated and ETF options abundant, the pressure is on treasury firms to prove they can generate returns beyond price appreciation. The May numbers suggest the market is voting with its wallet: passive storage of digital assets isn't enough. Whether the hybrid models or active staking plays can revive inflows remains an open question — and the next monthly data point will tell us if the slide has bottomed out or is still falling.
