Crypto treasury deals have become a pivotal force in the startup funding landscape, significantly influencing the flow of capital. In recent months, these deals have gained momentum, often overshadowing traditional startup funding rounds. As venture capitalists (VCs) increasingly focus on digital asset treasuries (DATs), the implications for general startup raises are profound.
Understanding the Rise of Crypto Treasury Deals
Throughout 2025, the prominence of crypto treasury deals has been unmistakable. According to data from The Block Pro, venture capital rounds for crypto startups, excluding DATs and token sales, have dropped dramatically. The number of these rounds fell from 1,933 in the previous year to just 856, marking a 56% decrease.
The total funding witnessed a reduction from $8.13 billion in the January–August period of 2024 to $8.05 billion in 2025. This figure, however, is inflated due to Binance’s substantial $2 billion raise in March. Without this, traditional funding plummeted to $6.05 billion, reflecting a 26% year-over-year decline.
Why VCs Favor Crypto Treasury Deals
Investors are gravitating towards crypto treasury deals for several compelling reasons. DATs offer immediate mark-to-market pricing and enhanced liquidity compared to conventional ventures. Additionally, when trading at a premium to net asset value (mNAV), they provide opportunities to raise more funds, acquire more crypto, and increase NAV per share.
Currently, liquid funds dominate the scene, with some VCs utilizing DATs as a temporary haven for idle capital. As noted by Ed Roman, co-founder of Hack VC, the appeal of DATs is clear, but their long-term viability will depend on the stability of mNAV multiples, especially in Bitcoin and altcoin-focused DATs.
Shifts in Venture Capital Strategy
A sharper focus on fundamentals has also contributed to the slowdown in early-stage venture activity. Investors are now prioritizing revenue-generating protocols with tangible value capture rather than mere narratives. Projects like Hyperliquid, which channel significant revenue back to token holders, have raised the bar for new startups.
Cosmo Jiang of Pantera Capital describes the shift away from backing valueless tokens as a healthy reset. The focus has returned to equity and revenue, moving away from speculative token launches.
Market Frictions and Future Prospects
Beyond DATs, broader market frictions are constraining early-stage funding. The post-2021 boom era has made it challenging for smaller crypto funds to secure backing, leading to limited “dry powder” for early-stage deals. Jed Breed of Breed VC highlights the cooling appetite among limited partners for small VCs.
Despite tighter capital availability, the quality of deal flow has improved. Teams now present with revenue models, compliance, and distribution channels, particularly in stablecoin projects. This trend signals a more mature and discerning investment landscape.
Opportunities remain underfunded, particularly in sectors like decentralized physical infrastructure networks (DePINs) and DeFi protocols with proven revenue models. Zero-knowledge technology and on-chain intellectual property are also emerging as promising areas.
The Future of Crypto Treasury Deals
Most VCs agree that crypto treasury deals will persist, albeit with a likely shakeout. Experts foresee a compression of NAV premiums, with a few large-scale DATs dominating the market. However, there’s a cautionary note on the proliferation of similar DAT strategies, which could face a significant shakeout during the next crypto downturn.
