David Duong, head of investment research, said that crypto treasuries can soon turn to mergers and acquisitions to grow and stand out in a competitive market.
Summary
- Mergers and acquisitions are on the rise as an important strategy for companies with crypto treasure boxes looking for scale and differentiation.
- Share purchase can support that prices, but are very sentiment-driven and defensive repurchase sometimes, as can be seen at Ton strategy company.
In a recent interview With Cointelegraph, Coinbase’s head of investment research, David Duong said that mergers and acquisitions can soon be a determining strategy for crypto -treasury companies, because the Digital Asset Treasury space is entering a more mature phase.
Duong explained that as the current cycle evolves, companies can move from pure collecting from crypto assets to the acquisition of competitors in an attempt to scale up and distinguish themselves. He mentioned the recent acquisition of Semler Scientific by Strive Asset Management as an early example of what could become a broader trend in the industry.
According to Duong, this consolidation could reflect traditional financial cycles, where only a handful of dominant players will remain.
In addition to mergers and acquisitions, Duong pointed out that Data is increasingly the yield-generating crypto-following strategies such as deployment and investigations. “And there is much more that they can do here. I think the future will depend a lot on what is happening with legal shifts, liquidity and market pressure to get a clearer idea of where all this can go in the long term.”
Why return is not a guaranteed victory for Crypto -Schatkists
This shift to consolidation comes when those companies are increasingly competing for dominance over specific tokens. Duong and Coinbase researcher Colin Basco emphasized in a recent report That the industry has entered into a “player-VS player” phase, in which companies use both the size and different financial maneuvers to stand out.
A clear example of this trend is the increase in stock buying under Treasury companies in recent weeks. For example, Trump Jr.-linked media company Thumzup expanded his return program from $ 1 million to $ 10 million, while Solana-oriented Defi Development Corp has increased from $ 1 million to $ 100 million.
However, the impact of such strategies is “very sentiment-driven,” Duong said, depending on the trust of investors in the long-term fundamentals of a company. In some cases, defensive returns that are intended to support stock prices have not to generate positive market reactions, as can be seen in the recent return of Ton Strategy Company, which coincided with a fall of 7.5% in shares.
“… If one that uses purchasing as a defensive maneuver to reduce its float, but market players think that the company retains an efficient capital allocation and transparent financing, then the stock price can benefit. Conversely, the opposite is true,” Duong said.
