Digital Asset Treasuries Shift Beyond HODLing as Firms Search for a Competitive Edge

Core Insights - The digital asset treasury (DAT) model, initiated by MicroStrategy, has evolved as companies seek higher returns beyond the traditional buy-and-hold strategy [1][7] - A significant number of public companies now hold over a million Bitcoins, with MicroStrategy leading the treasury holdings [2] - New strategies are emerging in the crypto treasury space, including decentralized finance (DeFi) yield farming and active token management [7] Group 1: DeFi Yield Strategies - Ethereum treasuries are increasingly utilizing staking and DeFi protocols to enhance yields, with GameSquare reporting an annualized yield of 7.84%, surpassing traditional staking returns [3][4] - Companies like GameSquare and SharpLink are actively deploying treasury assets into DeFi, with SharpLink planning to allocate $200 million worth of ETH to specific platforms [3][4] - Successful yield farming strategies are becoming essential for ETH treasury farms to differentiate themselves and attract investors [4] Group 2: Risk Management and Market Conditions - Some companies are opting to avoid DeFi, focusing instead on strategies that protect treasuries from market downturns, as highlighted by Republic Technologies' CEO [5][6] - The volatility of digital assets poses unique risks in public markets, prompting DATs to consider hedging strategies to mitigate potential losses [6]