Decline in Crypto Treasury Inflows Reaches October 2024 Levels

Decline in Crypto Treasury Inflows Reaches October 2024 Levels—What's Behind This Trend?

Crypto treasury inflows have significantly declined, reaching their lowest point since October 2024. This downturn reflects a broader trend in the industry as companies seek innovative strategies to effectively utilize Bitcoin and enhance their portfolios. Real estate investor Grant Cardone has introduced a unique approach that combines cryptocurrency with rental income.

Key Takeaways

Current monthly inflows for crypto treasury firms hover around $555 million, marking a decline since October 2024.
The surge of inflows post-2024 elections has been followed by a notable drop as market conditions have worsened.
Companies holding Bitcoin without additional strategies may fall behind; real operating businesses are better positioned.
New strategies include staking, mining, and decentralized lending, aiming to generate returns beyond mere price appreciation.
Grant Cardone's model integrates real estate with Bitcoin investment, seeking to mitigate risks associated with volatile crypto markets.

Crypto

What's Happening in the Crypto Treasury Space?

Real estate entrepreneur Grant Cardone believes he has identified a solution to the troubles plaguing the crypto treasury sector—combining Bitcoin with rental revenue. His fund acquires multifamily properties, collects rent, and invests the earnings into further Bitcoin purchases. This strategy provides investors not only with the potential for property appreciation but also with exposure to Bitcoin's price fluctuations. It is a method designed for a market that no longer favors mere accumulation without a proactive strategy.

Companies Eager to Maximize Bitcoin Usage

This strategic reevaluation comes during a challenging time for the crypto treasury sector, which has recently reported its lowest figures in over a year. According to data from DefiLlama, the monthly inflows into digital asset treasury companies have plummeted to approximately $555 million, marking the weakest performance since October 2024.

Monthly inflows into crypto treasury firms. Source: DefiLlama

Just prior to the U.S. presidential election, inflows had dipped to around $32 million as investors awaited clarity. Subsequently, a remarkable surge followed the election of U.S. President Donald Trump and subsequent favorable crypto regulations, with inflows skyrocketing past $12 billion. However, this growth was short-lived as inflows began to decline throughout most of 2025, remaining under $10 billion monthly, and dropping sharply again as we approached 2026.

The 10 biggest crypto treasury firms. Source: DefiLlama

The ongoing bear market has negated many of the gains made post-election, leading to significant drops in crypto prices to levels not seen since before the 2024 election, adversely affecting the valuations of treasury companies and stifling new investments.

Diminishing Interest in the Traditional Crypto Holding Model

Patrick Ngan, the Chief Investment Officer at Zeta Network Group, asserts that the traditional strategy of simply buying and holding Bitcoin—storing the asset without any active management—may no longer suffice. Companies that actively engage in cash-generating business operations will likely hold a competitive advantage.

BTCUSD trading at $73,517 on the 24-hour chart: TradingView

“Corporate Bitcoin treasuries now need to demonstrate they can use the asset actively, instead of merely storing it,” Ngan explained.

Various options for increasing the use of Bitcoin in treasury strategies are emerging. Treasury companies can stake their crypto assets to receive rewards on proof-of-stake networks, operate mining activities on proof-of-work chains, or leverage decentralized lending platforms. Each of these methods transforms a static balance sheet into one that can generate returns independently of price movements.

Cardone’s hybrid model takes this idea further. By anchoring investments in physical real estate—a stable asset with underlying rental demand—he avoids the pitfalls associated with depending solely on Bitcoin appreciation. The tax advantages associated with real estate ownership further enhance the potential returns.

Image from Pexels, chart by TradingView