American flag and representation of Bitcoin cryptocurrency are seen in this illustration photo taken in Krakow, Poland on January 4, 2025. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
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It seems likely that history will place 2025 as the year crypto went mainstream, not least thanks to the United States embracing digital assets. Re-engaging with its innovative roots, the US has launched a bid to become the “crypto capital” of the world, and as a result, we are seeing institutions becoming increasingly interested in cryptocurrencies.
As several US states introduced Bitcoin reserves and the tokenized Real-World Asset (RWA) market reached $26 billion, corporations have followed, and one of the biggest trends has seen US companies allocate a percentage of their assets toward the creation of cryptocurrency treasuries.
According to data published by DWF Labs, at least 26 publicly traded US companies have allocated a portion of their capital into crypto, with the combined value of on-chain holdings currently exceeding $85 billion.
This is a seismic shift in the portfolio strategies of publicly traded companies. Yet, as modern as the move may seem, it has been made possible, in significant part, through a very old tool: Private Investment in Public Equity (PIPE).
A stuffy old trading term in traditional finance (TradFi), PIPE lets companies secure capital directly from institutional investors who share their long-term vision, providing a streamlined and minimally regulated path to fund their asset acquisition strategies. For crypto, it is a way to secure reliable, sticky funding and its increasing use is a clear indicator of the industry’s maturation, as companies leverage established financial frameworks to integrate digital assets into their core operations.
The PIPE-crypto connection
Setting up a crypto treasury requires companies to hold substantial capital that they can invest into such strategies, and PIPE has emerged as a method that allows firms to achieve this goal in this new financial sector.
A recent example is Ethena Labs’ $360 million PIPE transaction for its project StablecoinX. Backed by major institutional investors like Dragonfly and Pantera Capital, the proceeds from the PIPE are expected to anchor a “multi-year treasury strategy” that will help build a reserve of its native ENA token.
This signifies an important shift within the crypto ecosystem that moves beyond the traditional, fiat-based, one-time capital investment route. Instead, it is a clear signal that long-term, crypto-focused strategies are attracting serious interest from top financial players.
Another deal underscoring this trend is the Sui Foundation’s recent participation as an investor in Mill City Ventures III, Ltd.’s $450 million PIPE. In this case, the proceeds were used to launch the first publicly traded SUI treasury. This investment allowed the Sui Foundation to establish an official, publicly traded vehicle for its token. This transaction demonstrates a new layer of sophistication: not only are crypto companies using PIPE to build their treasuries, but crypto foundations are also leveraging this mechanism to create institutional-grade access to their native tokens for public market investors.
Crypto firms are not the only ones stepping into the PIPE fever dream. According to DWF Labs, other big names allocating growing portions of their treasuries include – of course – Strategy, as well as Trump Media, Tesla, GameStop and China-based Nano Labs.
Strategic financing tools in a converging landscape
While PIPE transactions have taken the spotlight, they are part of a broader set of financial instruments now being explored by both crypto-native and traditional companies to manage treasuries and access capital markets.
Alongside PIPEs, two other key tools have emerged: convertible notes and Special Purpose Acquisition Companies (SPACs). This mix of financial engineering offers investors flexibility and upside exposure, while delivering immediate capital.
PIPE deals offer a streamlined route for direct equity investment, connecting companies with institutional investors. Meanwhile, convertible notes, which function as zero or low-coupon bonds that can be converted into equity, give investors both downside protection and potential upside. SPACs enable companies to go public through reverse mergers, often paired with PIPE financing to provide immediate capital post-acquisition.
The appeal of these mechanisms lies in their flexibility and efficiency. By allowing firms to easily secure capital, align with strategic investors, and maintain operational momentum, PIPE transactions continue to gain broader adoption for building crypto treasuries. They also reflect a growing relationship between digital assets and TradFi.
While frameworks continue to develop around their usage, what remains clear is that these strategies are empowering crypto and traditional firms alike to access institutional-grade capital with greater confidence and sophistication.
From PIPE dream to PIPE reality
Corporations holding crypto on their balance sheets were once considered a far-fetched dream. But this has rapidly become mainstream, thanks in part to PIPE financing.
Crypto treasuries, previously the domain of native crypto firms or maximalist early adopters, are now being crafted with precision using the very tools that built the traditional finance system. In this sense, PIPE is not just a funding mechanism, but a bridge between ambition and execution.
By transforming crypto from a speculative frontier into a capital-efficient, long-term asset class, PIPE transactions offer companies the possibility to raise capital while aligning with investors who understand both the vision and the volatility of the space. For public companies, it is a path to on-chain participation without the constraints of traditional capital markets. For crypto-native projects, it unlocks a new level of institutional engagement without diluting the community-driven ethos at their core.
Recent deals such as Ethena’s $360 million PIPE raise highlight that this is not a passing trend; it is a maturing blueprint. These moves do not just bring capital into crypto, but validate the asset class as a capital destination.
In that light, the “PIPE dream” is not about wild speculation or blind belief; it is about designing for permanence, scalability, and legitimacy. And as more companies adopt these tools, crypto treasuries will shift from being edge-case strategies to standard balance sheet assets.
