• Galaxy Digital CEO Mike Novogratz believes the trend of companies adding Bitcoin to their treasury reserves has reached its peak with fewer new entrants expected.
  • The firm recently executed one of the largest Bitcoin sales in history, selling 80,000 BTC on behalf of an anonymous client to institutional buyers.
  • Meanwhile, US spot Bitcoin ETFs have been selling holdings for four consecutive trading days, offloading over US$1.2 billion worth of BTC since early August.

Galaxy Digital founder and CEO Mike Novogratz believes the Bitcoin-as-a-treasury model has peaked. According to a Bloomberg report, citing the firms second-quarter earnings call, he said:

Weve probably gone through peak treasury company issuance.

Galaxy Digital founder and CEO Mike Novogratz

Following the boom of spot Bitcoin and Ethereum exchange-traded funds (ETFs) introduced in 2024, companies began adding crypto mainly BTC and ETH to their corporate reserves.

Leading examples include Michael Saylors Strategy (formerly MicroStrategy) and Japan-based Metaplanet. The idea has since spread, with more and more companies following Saylors playbook.

However, Novogratz thinks the surge in new crypto treasury companies has likely peaked, meaning fewer new entrants are expected. He expects existing firms to continue growing and attracting more capital, driving long-term gains for both the industry and Galaxy Digital.

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Galaxy Digital is a financial services and investment firm focused on digital assets and blockchain technology. Its services include asset management and crypto-focused solutions for institutional clients, and other services.

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The firm recently executed one of the largest Bitcoin sales in history. Novogratz said that 80,000 Bitcoin had been sold on behalf of a client who remains anonymous.

He said he was pleased that the large sale was quickly absorbed by major institutional buyers. In the very same earnings call, he said:

Call it grace, call it luck, call it fortune, call it timing a combination of all that but the execution happened when there was a tremendous amount of buying.

Galaxy Digital founder and CEO Mike Novogratz

Novogratz added that the buying is coming mostly from these balance sheet companies.

At the time of writing, Bitcoin is trading at US$113,937 (AU$175,755), down 3% over the past week.

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US spot Bitcoin ETFs have been selling for the past four trading days. Since the beginning of August, the funds have sold over US$1.2 billion (AU$1.85 billion) worth of BTC, ending a multi-day streak of net inflows.

Data from BiTBO shows they still hold a combined 6.1% of the total Bitcoin supply around 1.2 million BTC worth US$146.7 billion (AU$226.3 billion).

Related: SEC Boosts ETF Limits, Giving BlackRocks Bitcoin Fund Even More Room to Run