Jackson’s firm, EMJ Capital, is preparing to launch EMJX, a crypto-focused treasury company that will hold bitcoin, ethereum, and a curated selection of smaller cryptocurrencies. Unlike other high-profile crypto treasury firms, EMJX aims to combine a multi-asset approach with active risk management to protect against steep downturns while still participating in market upswings.
“Risk-managed digital treasuries are the next frontier,” Jackson said in an interview. “They allow us to capture upside when bitcoin performs well, but also insulate us from the massive drawdowns that can happen during crypto winters.”
Crypto treasury companies, which allocate a firm’s cash reserves into cryptocurrencies as strategic assets, have gained popularity in recent years. Michael Saylor’s Strategy Inc, for example, has become emblematic of the single-asset treasury approach. EMJX, by contrast, plans to deploy proprietary artificial intelligence models to guide its hedging decisions, incorporating signals from both bitcoin and ethereum rather than relying on just one token.
Backtests of EMJX’s strategy suggest the approach could have meaningful advantages. The simulations indicate that the company’s holdings would be up roughly 31% this year, even as bitcoin and ethereum have fallen 3% and 10%, respectively. In comparison, Strategy Inc shares have declined by 41%.
Jackson points to the richness of crypto market data as a key differentiator. “Blockchains record money flows in real time, so we can study the behavior of large market participants, or ‘whales,’ in ways that traditional markets don’t allow,” he said.
EMJX will also leverage Jackson’s hedge fund experience when selecting smaller cryptocurrencies, looking for tokens that have the potential to significantly impact the treasury’s overall value. Jackson cited his prior success with stock picking as an example: his models flagged used-car retailer Carvana as a buying opportunity at $11, after it had hit $3.50; the stock later soared to $378.
“We only need to get a handful of these calls right,” he said, “and it could have a very meaningful effect on the overall treasury as it plays out.”
With crypto prices fluctuating well below their recent peaks, Jackson’s strategy reflects a growing appetite for investment approaches that combine upside potential with active risk mitigation — a balancing act that could define the next phase of institutional crypto investing.