The Wall Street’s Princeton Mafia Behind Bitcoin and Ethereum Treasuries | US Crypto News
Digital asset treasuries (DATs) — once the institutional engine of Bitcoin’s rally — are faltering. Purchases collapsed 76% in September, casting doubt on a model powered by Wall Street veterans and Princeton alumni. While ETFs still draw inflows, the slowdown in DAT activity raises questions about whether corporate treasuries can continue fueling Bitcoin’s rise.
Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee as influential circles shape bold new bets in crypto. Capital has poured in, strategies repeat at speed, and familiar names keep surfacing. Yet behind the momentum, warning signs are emerging, leaving questions about how long this cycle can truly last.
Crypto News of the Day: Power, Billions, and Cracks in Wall Street’s DAT Machine
A tight circle of Princeton alumni is central to digital asset treasuries (DATs), one of the boldest bets in today’s markets, as indicated in a recent US Crypto News publication.
Dubbed the “Princeton Mafia,” figures like Galaxy Digital’s Mike Novogratz, Pantera Capital’s Dan Morehead, and Ethereum co-founder Joe Lubin have repeatedly appeared in billion-dollar treasury deals, raising capital, stockpiling coins, and reshaping Wall Street’s approach to crypto.
Over 85 publicly traded DAT firms have emerged this year alone, raising upwards of $44 billion from investors spanning the US, Asia, and the Gulf.
While the strategy is simple, it is also powerful. It leverages Wall Street playbooks to raise cash, purchase crypto tokens like ETH and Solana (SOL), hold them on balance sheets, and then repeat.
With recurring participation patterns by the same elite bankers and fund managers’ networks, DATs quickly became one of the most influential forces in crypto’s 2025 rally.
Novogratz, Morehead, and Lubin’s ties go back to Princeton University in the 1980s, when the three were athletes and classmates. Decades later, their firms often cross paths in crypto ventures by coincidence or design.
Recent deals illustrate the overlap, including Lubin’s Ether-focused SharpLink Gaming launching this year with backing from both Pantera and Galaxy. The two firms also invested in BitMine Immersion.
Even when competing, as with dueling Solana treasury launches from Pantera and Galaxy in September, the trio’s presence highlights their gravitational pull in the market.
This influence extends beyond dealmaking. The group helped fund Princeton’s Center for the Decentralization of Power Through Blockchain Technology, institutionalizing their shared vision of Wall Street re-engineered for crypto speed.
Cracks Emerge in the Digital Asset Treasury Engine
Yet the bold experiment is already showing strain. According to CryptoQuant data, Bitcoin purchases by DATs plunged 76% in recent months, falling from 64,000 BTC in July to just 15,500 so far in September.
The sharp drop raises questions about whether the DAT model can sustain itself without constant fresh capital inflows.
The sell-off has hit public markets hard. Shares of treasury firms that once traded at hefty premiums to their net crypto holdings have collapsed. In some cases, they have dropped more than 90% from issue prices.
SharpLink plunged 72% in a single day following an equity sale filing, while Pantera-backed BitMine dropped 40% after a similar move.
Sharplink Gaming (SBET) Shares Performance. Source:
Analysts warn that the DAT machine, which entails raising, buying, and repeating, risks breaking down if capital markets sour.
Bitcoin’s supposed institutional anchor looks more like quicksand without corporate treasuries as steady buyers.
Alongside DATs, ETF (exchange-traded funds) inflows are also wobbling, losing nearly $2 billion last week.
Notwithstanding, the iShares Bitcoin Trust drew $2.5 billion in September, up from $707 million in August. This suggests retail and institutional ETF buyers may be absorbing demand left unmet by treasuries.
Still, the slowdown in DAT buying highlights a growing divergence. ETFs provide transparency, while DATs expose investors to volatility, leverage, and opaque deal structures.
Chart of the Day
Bitcoin and Ethereum in DATs. Source: VanEck and Artemis
Byte-Sized Alpha
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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