The "Princeton Mafia" and the Digital Treasury Boom
Date: 2025-09-24 Author: Oliver Abernathy Categories: BUSINESS
A new trend is emerging in the cryptocurrency sector: the rapid development of digital asset treasuries (DATs). According to Bloomberg, approximately 85 companies operating under this model received $15.4 billion in investments in the first nine months of 2025. The strategy involves public companies issuing shares, raising capital, and using it to purchase cryptocurrencies, building long-term reserves.
A particularly important role in this process is played by a group of entrepreneurs dubbed the "Princeton Mafia" in business circles. They include Mike Novogratz (Galaxy Digital), Dan Morehead (Pantera Capital), and Ethereum co-founder Joseph Lubin. Their acquaintance dates back to their years at Princeton University in the 1980s, and their close ties facilitate joint projects and investments.
Examples of such cooperation are notable: in the spring, Lubin participated in the creation of SharpLink Gaming's Ethereum treasury, in which both Galaxy and Pantera invested. The same entities supported BitMine Immersion, which holds Ether on its balance sheet. However, cooperation does not preclude competition. For example, in September, Pantera funded the Solana-based Helius project, while Galaxy participated almost simultaneously in the launch of a competing DAT company, Forward Industries. According to the entrepreneurs themselves, such collaborations occur without prior coordination.
"If you have a strong concept and the ability to communicate it, you can attract capital more quickly for projects related to Solana or Ethereum," Novogratz noted.
The SEC's more lenient stance, which has made it clear that most tokens will not be classified as securities, also contributes to DAT's popularity. This effectively paved the way for Michael Saylor's signature strategy: raising funds, converting them into cryptocurrency, and holding the assets.
However, the market is not without risks. In June, SharpLink shares lost 72% of their value in just one day after filing for an additional offering. BitMine shares fell 40% in a similar scenario. Despite this, Lubin stated that SharpLink will continue to pursue its chosen strategy of raising capital, acquiring, and holding Ethereum.
According to Morehead, DAT companies are opening the blockchain market to a new category of investors. Novogratz, for his part, acknowledges that not all initiatives will be successful, but overall views this trend as a positive impetus for the industry.
Discussions about the prospects of digital treasuries continue: back in August, their rapid growth sparked heated debate among market participants.
