A cohort of Princeton graduates is reshaping corporate treasury strategy by steering reserves into Bitcoin and Ethereum. This “Princeton Mafia” applies Wall Street methods to accumulate crypto, affecting how companies and large funds hold reserves and influencing balance sheets, fund managers, and regulators.
The label refers to leaders like Mike Novogratz, Dan Morehead, and Joseph Lubin, they are linked to the rise of Digital Asset Treasuries (DATs). These strategies raise capital, buy crypto, and reinvest proceeds, reframing treasury management through a crypto-inclusive cycle.
What´s new in the Digital Asset Treasury Engine?
A DAT functions as a balance sheet plan that lists crypto alongside cash and bonds. This approach embeds digital assets into corporate finance, positioning crypto as a treasury line item rather than a peripheral investment.
Ethereum draws attention because Proof-of-Stake pays staking rewards. Standard Chartered says treasuries in Ethereum next to Solana can earn those yields, while Bitcoin does not provide staking returns.
Bitcoin still leads by size, with an estimating DATs hold about 160 billion USD in BTC. Ethereum ETFs have seen heavy inflows and that during parts of August 2025, net flows tilted toward ETH over BTC. HashKey, a 500 million USD digital fund, alongside BitMine, appear as examples of firms running DAT strategies.
The trend broadens institutional use of ETH, adding liquidity and demand. Staking yields provide treasuries with a cash-like return, making Ethereum operationally useful in treasury portfolios.
Risks include concentration and the danger of over-leveraged books. Vitalik Buterin warned that “excessive leverage” threatens ETH-based treasuries, while regulatory uncertainty and potential litigation could slow or redirect corporate plans.
The near-term calendar points to price and allocation moves before the end of 2025. Tom Lee projecting Ethereum at 10,000–15,000 USD by December; if that level holds, it could accelerate institutional shifts into ETH, with ETF flow data and regulatory rulings setting the next phase.
