Crypto treasury inflows fell sharply in May, dropping to $180 million—the weakest monthly total since October 2024—as Bitcoin-linked firms accounted for nearly all of the activity with $177 million. The figure represents a 95% decline from April’s $4.4 billion and is roughly 93% below the January–May monthly average, after both March and April exceeded $4 billion.
May Inflows Plunge as Bitcoin Dominates
Flows into companies that hold digital assets on balance sheet slowed dramatically in May, with Bitcoin-focused treasuries capturing almost the entire month’s total. Smaller net additions went to ZCash, Story, and Sui, while Litecoin posted an outflow.
- Bitcoin-linked firms: +$177 million
- ZCash, Story, Sui: modest net inflows
- Litecoin: –$1.89 million
The steep decline underscores how quickly momentum has faded since the robust pace earlier this year. May’s total was a fraction of April’s and well below the five-month average through May.
Post-Election Momentum Has Ebbed
According to DefiLlama data, digital asset treasury (DAT) inflows surged past $12 billion following the 2024 U.S. election amid expectations for a friendlier policy backdrop. Activity then cooled through 2025, largely staying below $10 billion a month into late summer before slipping again. Subsequent market declines compounded the pressure, and investor scrutiny of companies that rely on token accumulation alone has increased.
Yield Pressure Is Reshaping Treasury Strategies
Market participants say the traditional buy-and-hold approach carries less weight in the current environment. Galaxy Digital has argued that treasuries need to deploy assets—through staking, validator operations, DeFi lending, or other active strategies—to sustain returns. Patrick Ngan of Zeta Network Group said firms holding Bitcoin must demonstrate more than passive balance-sheet exposure, noting that businesses with real cash flow may be better positioned than pure holders.
Arthur Firstov of Mercuryo added that spot ETFs provide institutions with low-cost, liquid exposure to crypto, making it harder for listed treasury companies to trade at a premium to net asset value. While staking can help proof-of-stake treasuries generate revenue, he said it does not offset weak operations, dilution, or balance-sheet losses.
Hybrid Models Emerge
A shift toward mixed strategies is already visible. Grant Cardone has linked Bitcoin exposure with multifamily real estate in a treasury-style structure that seeks to pair rental income and property appreciation with additional BTC accumulation. Such combinations illustrate how firms are experimenting with diversified cash flows alongside digital asset holdings.
For now, the data points to a sector that has lost speed quickly. Bitcoin remains the clear leader in treasury allocations, but recent flows suggest the easy-money phase has passed, and active, revenue-generating models are increasingly in focus.