Digital Asset Treasuries Experience Significant Inflows Decline

According to recent data from DeFiLlama, digital asset treasuries experienced a significant decline in May, with inflows reaching just $180 million. This marks the lowest level since October 2024 and represents a sharp drop from the previous month's total of $4.4 billion.

The majority of this sum, $177 million, was attributed to Bitcoin-related treasuries, accounting for nearly all of May's inflows at 98%. However, even this figure is starkly lower than the $3.8 billion received by BTC-exposed firms in April.

Analysts from Galaxy Digital have warned that the traditional accumulate-and-hold model is no longer sufficient for digital asset treasuries. They recommend that these companies adopt more active strategies, such as staking, validator infrastructure, or decentralized finance models, to generate yields and justify their existence to investors.