Coinbase: "M&A among crypto treasury firms will intensify"

An analysis has emerged that mergers and acquisitions (M&A) among companies that have adopted Digital Asset Treasury (DAT) strategies could soon accelerate.

David Duong (David Duong), head of investment research at Coinbase, said in an interview with Cointelegraph on the 2nd (local time), "As crypto treasury companies enter a maturity phase, they may begin pursuing mergers and acquisitions like Strive and Semler Scientific to attract investors." Earlier, U.S. asset manager Strive announced late last month that it had acquired Semler Scientific. Semler Scientific is a U.S. Nasdaq-listed company that began holding Bitcoin (BTC) last year.

Duong said competition among DAT companies has already intensified. He explained, "The recent increase in share buybacks by crypto treasury companies over the past few weeks is the result of this competitive dynamic," adding, "Companies believe that only a small number of large players will survive for each token, and they are attempting to differentiate themselves through scaling or financial-engineering strategies."

However, he pointed out that share buybacks do not automatically lead to share price increases. Duong said, "The effect of share buybacks is ultimately driven largely by investor sentiment," and added, "Even if a DAT company uses share buybacks simply as a defensive measure, it can help the share price if the market views the company's capital allocation ability and funding transparency positively."