Bitcoin (BTC) treasury firms reached a document holding of 840,000 BTC in August, however underlying knowledge reveal weakening institutional demand.
In keeping with a Sept. 5 report by CryptoQuant, buy volumes and transaction sizes plummeted to multi-year lows.
Technique led company Bitcoin accumulation with 637,000 BTC, representing 76% of whole treasury holdings. On the identical time, 32 different firms management the remaining 203,000 BTC.
Holdings surged following the November 2024 US Presidential Election, with Technique greater than doubling its place from 279,000 to 637,000 BTC and different firms increasing their holdings 13-fold from 15,000 to 203,000 BTC.
Declining buy volumes
Technique acquired 3,700 BTC in August, down dramatically from 134,000 BTC bought in November 2024. Different treasury firms bought 14,800 BTC, which is under the 2025 common of 24,000 BTC and considerably decrease than their June peak of 66,000 BTC.
The common Bitcoin per transaction dropped to 1,200 for Technique and 343 for different firms, down 86% from early 2025 highs. The report attributed the smaller transaction sizes to liquidity constraints or potential market hesitation amongst institutional consumers.
Month-to-month holdings progress decelerated sharply for Technique, falling from 44% in December 2024 to only 5% in August. Different treasury firms skilled related patterns, with month-to-month progress dropping from 163% in March to eight% in August.
Regardless of recording 53 buy transactions in June and sustaining elevated exercise via August with 46 transactions, the frequency masks declining institutional urge for food. Treasury firms accomplished solely 14 transactions in November 2024, making present ranges seem strong by comparability.
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The report targeted on pure-play, publicly-traded Bitcoin treasury firms holding 1,000 BTC or extra, excluding mining firms and corporations with substantial working companies like Tesla and Coinbase.
Regulatory and market pressures mount
The treasury market faces new regulatory headwinds as Nasdaq implements shareholder approval necessities for fairness issuances used to buy crypto.
The rule change targets the crypto-treasury playbook, the place public firms promote fairness or convertibles to fund token purchases. Because of this, this modification may gradual the fast capital deployment that characterised 2025.
As well as, Sequans Communications grew to become the primary Bitcoin treasury firm to execute a reverse inventory cut up, adjusting its American Depositary Shares construction to take care of NYSE itemizing necessities.
The corporate controls 3,205 BTC, valued at roughly $355 million, however its inventory declined 75% this 12 months, elevating issues about potential asset gross sales to defend share costs.
The report concluded by revealing patterns just like the 2020-2021 cycle, when Technique’s holdings progress peaked at 78% earlier than declining to six% a 12 months later. The present setup suggests institutional Bitcoin accumulation could also be getting into the same deceleration section.
