Bitwise: Top Crypto Treasuries Win by ‘Doing the Hard Stuff
Bitwise Chief Investment Officer Matt Hougan is challenging digital asset treasuries (DATs) to “do something hard” if they want...
Quick overview
- Bitwise CIO Matt Hougan urges digital asset treasuries to innovate beyond simply holding crypto assets to attract serious investors.
- He suggests engaging in DeFi lending, using advanced derivatives strategies, and leveraging balance sheets for debt-backed investments.
- Hougan highlights MicroStrategy as a successful example of a treasury that has effectively executed a challenging strategy.
- He warns that companies relying on crypto for short-term PR gains often struggle to maintain momentum and long-term success.
Bitwise Chief Investment Officer Matt Hougan is challenging digital asset treasuries (DATs) to “do something hard” if they want to attract serious investors. In a Wednesday post on X (formerly Twitter), Hougan said firms merely buying and holding crypto assets on their balance sheets no longer offer meaningful value.
“Buying a crypto asset and putting it on a balance sheet today isn’t hard,” Hougan wrote. “If that’s all a DAT is doing, investors are better off owning an ETF. This is true even if the DAT is staking, as ETFs now stake.”
Bitwise—known for launching several crypto-linked ETFs, including a Solana ETF that supports staking—argues that investors should prioritize innovation and strategic use of digital assets, rather than passive accumulation.
What Makes a Strong Crypto Treasury
Hougan outlined a few ways for digital asset treasuries to distinguish themselves in a rapidly growing sector that now includes over 200 companies holding a combined one million Bitcoin, worth more than $101 billion.
To stand out, DATs can:
- Engage in DeFi lending and yield-generating protocols.
- Write covered calls or employ other advanced derivatives strategies.
- Leverage balance sheets to issue debt-backed crypto investments.
⚡️ LATEST: BITWISE CIO TWEETED SAYING CRYPTO TREASURIES MUST “DO SOMETHING HARD” TO STAND OUT, OTHERWISE INVESTORS ARE BETTER OFF BUYING ETFS. pic.twitter.com/eiIozec8is
— Coinwaft (@coinwaft) November 6, 2025
“These aren’t necessarily easy or universally good ideas,” Hougan cautioned, “but they require real expertise. If executed well, they can deliver sustainable rewards.”
He noted that companies turning to crypto merely as a public relations boost often see short-term gains but fail to maintain momentum. A CoinGecko report this week found that DAT-related stocks typically spike in the first 10 days after a crypto pivot, but “tend to drop soon after.”
MicroStrategy Sets the Standard
Hougan pointed to MicroStrategy, led by Michael Saylor, as an example of a treasury “doing something hard.” The firm holds 641,205 Bitcoin—valued at more than $66 billion—and has issued debt against that position.
“MicroStrategy owns $64 billion in Bitcoin against $8 billion in debt,” Hougan said. “It’s hard to raise $56 billion in equity to buy Bitcoin within a corporate structure. That’s not easy.”
The number of crypto treasuries has surged, with 48 new firms joining in October alone, but Hougan warned that long-term success depends on execution. “In the end, good companies get rewarded for doing hard things well,” he said. “Bad ones that take the easy route don’t.
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