Ryan Watkins, co-founder of Syncracy Capital, suggests that cryptocurrency treasury companies may evolve beyond mere speculative tools to become enduring economic engines within blockchain ecosystems. In his blog post published on September 23 and a subsequent social media update, Watkins highlighted that these companies collectively manage assets valued at $105 billion.
Potential within the Cryptocurrency Ecosystem
Watkins describes cryptocurrency treasury (DAT) companies as public entities that accumulate capital by adding cryptocurrency to their balance sheets. Presently, the balance sheets of DAT entities filled with Bitcoin 
$77,420, Ethereum 
$2,287, and other prominent cryptocurrencies are poised to serve functions beyond mere asset holding. Watkins envisions these organizations eventually having the capacity to develop products, engage in governance processes, and establish new ventures within their ecosystems. He particularly emphasizes that entities accumulating large volumes of cryptocurrency on networks like Solana 
$84 and Hyperliquid could enjoy advantages such as reduced transaction costs and optimized user fees.
With the programmable nature of cryptocurrencies, Watkins underscores the potential for DATs to become active players in their ecosystems rather than being mere investors. By engaging in activities such as staking, providing liquidity, lending, and operating nodes, DATs have the potential to make their balance sheets productive. This could lead to the establishment of a new corporate model that directly contributes to the growth of the networks.
Watkins compares these entities to closed-end funds, real estate investment trusts, and banks, drawing parallels to Berkshire Hathaway’s long-term capital accumulation approach. However, he highlights the key difference of earnings being reflected directly in terms of cryptocurrency per share, rather than management fees.
Watkins Predicts Filtering of First-Generation Treasuries
Watkins emphasizes that not all DAT companies will endure. He predicts that many first-generation treasuries will be phased out due to a focus only on financial engineering without attention to operational structure. As the market matures, mergers, diverse financing models, and even faulty balance sheet management might emerge.
He stresses the necessity of disciplined capital management and operational capability for success, stating that companies meeting these criteria could transform into strong entities in the long run. DATs that can reinvest cash flows into new cryptocurrency acquisitions, product development, and ecosystem investments may eventually become corporate giants similar to “Berkshire Hathaway” within their respective blockchains.
This approach highlights the growing importance of sustainable corporatization processes within the cryptocurrency market, beyond short-term price movements. Watkins believes that well-managed treasuries can offer long-term value to both their investors and their respective networks.
