Galaxy Digital, the crypto-focused financial services firm founded by Bitcoin bull Michael Novogratz, is cautioning that the fast rise of public companies buying crypto for their balance sheets could potentially make the market “structurally fragile.”

In a July 31 research report, the New York-headquartered crypto firm said the rise of Digital Asset Treasury Companies — or DATCOs — is tied to a single trade: raising equity and using the proceeds to purchase Bitcoin or other cryptocurr