Investing 2026: What's Next for Crypto Treasury Companies

As we wrap up the year, we wanted to share an update on one of the alternative assets we keep tabs on here at Stock Picker’s Corner (SPC): cryptocurrencies.

Recently, Bitcoin (BTC) and other cryptos have taken a back seat to the growing trend of “crypto treasury” companies. Here we’re talking about firms stockpiling digital assets because they see crypto as a superior alternative to cash, because they want to capture headlines and investor attention, or a combination of both.

Way back in March, early Bitcoin miner and crypto expert David Zeiler told our SPC Premium readers this would be a growing trend. So we wanted to circle back with him and share his outlook for the year ahead.

Here’s what he had to say …

Question No. 1: In a SPC Premium issue from March, you told our members that, for those who don’t want to sign up for an exchange, investing in Strategy $MSTR ( ▲ 3.83% )  was a legitimate alternative to a direct Bitcoin investment. You also warned that it was riskier than investing in Bitcoin directly because Strategy was a “leveraged” play. Heading into 2026, do you still feel that way?

Pretty much. It has played out as any leveraged play would. It’s high-risk, high-reward. That is, as long as the Bitcoin price was going up, investors in Strategy stock were outgaining Bitcoin by a large margin.

In calendar year 2024, MSTR soared by 380% compared to a gain of just 124% for Bitcoin. But with Bitcoin pulling back over the past few months, the numbers have reversed.

Strategy has dropped about 36% year-to-date, while Bitcoin is only down about 2.5%. Since peaking for the year in mid-July, MSTR has plunged about 60%.

If that isn’t bad enough, a couple of ETFs that added an additional 2x of leverage to the Strategy “treasury trade” have each plunged more than 80%. Which is why I personally have never been a fan of leveraged trades of any kind, although many investors love them.

Things are getting dicey for Strategy and could get much worse if Bitcoin goes into an extended bear market. The Strategy CEO, Phong Le, recently said on a podcast that falling Bitcoin prices could at some point force the company to sell some of its Bitcoin to raise capital.

But that would be brutal for MSTR shares, since the only reason to own them is as a leveraged play on rising Bitcoin prices. 

Meanwhile Strategy Executive Chairman Michael Saylor has always vowed to never sell any Bitcoin. And the company recently bought another $1 billion worth of Bitcoin.

Still, given the much higher risk MSTR presents, I think most investors should avoid it. Or at the very least own only a minimal amount of it and plan to hold for the long term.  I recommend using a Bitcoin ETF instead. That gives you a similar avenue for getting exposure to the cryptocurrency without dealing with the hassles of owning it directly – and without the stress of owning a wildly volatile MSTR.

Question No. 2: Do you think there’s room for multiple Bitcoin treasuries to exist, or when the dust settles, will Strategy be one of the only games in town?

While Strategy is having its troubles, it is in the best position to survive a Bitcoin bear market. For one thing, it owns about 80% of the Bitcoin held by “digital asset treasury” (DAT) entities. And because it started buying Bitcoin back in 2020, much of that stash was obtained at prices well below current levels.

That’s a big deal considering most of the other Bitcoin treasury companies are substantially under water right now. Strategy is in positive territory as long as the Bitcoin price stays above $75,000. The other DATs have an average cost basis of between $95,000 and $118,000. Yikes.

If we do have a protracted Bitcoin bear market, I don’t see a lot of these treasury companies surviving. Their stock prices have already dropped below their NAVs. A long period of falling BTC prices will make matters worse, making an investor stampede for the exits likely. 

No. 3: What do you think about investing in other crypto treasuries, like Ethereum (ETH) and Solana (SOL)? 

Any crypto treasury stock will share the same risks as the Bitcoin treasuries, meaning that bear markets will create severe challenges with the potential to inflict a lot of pain on investors. I would exercise extreme caution around any DAT.

Over the long term, it’s possible that DATs could prove very lucrative. But they’ll need to survive any number of downturns to get there. I’m don’t think the risk is worth it when there are other ways to own crypto, either directly through an exchange or by using ETFs.

Frankly, DATs strike me as one of those Wall Street inventions that sounds like a great idea until it blows up in everyone’s face.  

We want to thank Dave for sharing his insights, and we’ll be sure to follow up with him on what’s ahead for Bitcoin in 2026.