Main Points :
- Corporate accumulation of Bitcoin (BTC) and Ethereum (ETH) by listed firms has sharply declined after the October market drop.
- Major “digital-asset treasury” (DAT) companies have nearly stopped purchasing BTC since the mid-October slump, signalling a loss of institutional confidence.
- ETH accumulation is being driven almost solely by one major player (BitMine Immersion Technologies), while other firms remain on the sidelines.
- The valuation gap between crypto holdings and equity market cap for treasury firms is widening, raising concerns about strategy sustainability.
- For investors seeking next-generation crypto assets or practical blockchain use cases, the caution among major buyers suggests a more fragile backdrop for entry.
1. Background: What Happened in October
Following a sharp drop in the crypto market around October 10, many public companies that had been accumulating crypto assets via treasury strategies paused their buying. According to Coinbase Institutional’s global investment research lead David Duong, digital-asset treasury (DAT) firms “almost stopped moving and have not re-entered” since that Oct 10 drop.
Specifically, BTC fell by around 9 % from about $121,500 to near $105,000 between October 10–11. At that time ETH also dropped approximately 15 % to $3,686. These moves triggered an increase in caution among corporate treasurers.
The implication: large, previously active corporate buyers—often described as “heavy-weight” buyers with deep treasuries—have paused accumulation, indicating that market participants should treat the current phase as one of heightened caution rather than renewed exuberance.
2. Corporate Treasury Activity Slows
Historically, many listed firms adopted the crypto-treasury model: raise capital (via share issuance or debt), purchase and hold crypto (mainly BTC, later ETH), and thereby offer shareholders (and the market) a form of inflation hedge or alternative asset. More than 200 such companies announced treasury-crypto plans this year alone.
Yet recent data show accumulation is dropping: For example, one report noted that BTC purchases by treasury firms plunged to around 12,600 BTC in August and only ~15,500 BTC through September.
Moreover, firms that converted themselves into crypto-treasury vehicles—including formerly loss-making companies—are facing regulatory and market headwinds.
Analysts are pointing out that these companies are now increasingly trading below the value of their crypto assets (i.e., equity market cap < value of crypto reserves), raising questions about the business model: if your main asset is crypto, but the market values you lower than your crypto, what is the growth story?
3. The ETH Story: One Buyer Still Active
While BTC accumulation has broadly stalled, the ETH side shows a slightly different narrative. One stand-out firm, BitMine Immersion Technologies, reportedly purchased ~483,000 ETH (worth roughly $1.9 billion) since October 10, making it nearly the only large public company still actively building an ETH treasury.
Other data: BitMine announced holdings of ~2.15 million ETH (≈ $9.75 billion) and a target of accumulating up to 5 % of circulating ETH supply.
This ETH accumulation by a dedicated treasury firm suggests that among major corporates only those with a clear strategy, risk tolerance and funding model are still building. The rest appear paused. For investors looking for assets beyond BTC, ETH may signal selective institutional interest—but it’s concentrated, not broad-based.
4. Market Implications: What This Means for Crypto Investors
For our target audience—investors seeking new crypto assets, yields, and practical blockchain application—the slowdown in corporate accumulation poses several implications:
a) Weaker “corporate demand floor”
Previously, a popular narrative was that firms buying BTC/ETH provided a demand floor (i.e., even if retail pulled back, treasury companies would step in). The pause in accumulation weakens this narrative. Without heavy-weight buyers stepping in, price support may be thinner than assumed.
b) Increased fragility in market sentiment
When major players remain inactive, sentiment matters more. As noted by Duong, when the largest discretionary investors stay sidelined, “the market looks very fragile.” The risk of a negative surprise or liquidity event is higher.
c) Opportunity for selective assets
If corporates are pausing accumulation of BTC/ETH, this could shift institutional interest toward alternative blockchain protocols and assets—especially those tied to utility (staking yield, DeFi, real-world assets). For example, ETH’s staking and smart-contract ecosystem gives a different value proposition than BTC’s “digital gold” role. Context: one recent article noted that ETH treasuries now represent a higher percentage of supply than BTC ones.
d) Elevated risk / reward for entry timing
Given corporate buyers are cautious, any re-accumulation cycle might require a catalyst (e.g., regulatory clarity, ETF approvals, macro tailwinds). For investors entering now, the risk-adjusted profile suggests greater uncertainty and the need for stronger conviction or differentiated return assumptions.
5. What Investors Should Watch
To position effectively in this environment, consider monitoring:
- Corporate treasury filings: watch for disclosures of large purchases or new treasury strategies in S-1 filings or 10-K/Qs.
- Disclosure of crypto holdings vs equity valuations: track firms whose market cap trades below the crypto value on their balance sheet—this may signal either risk or opportunity.
- Eth protocol developments: given ETH accumulation is concentrated, developments in Ethereum staking yield, ETH ETF/ramp-ups, and DeFi application growth could create differentiated edge.
- Macro and regulatory events: The pause in accumulation is partly driven by macro/risk factors (e.g., trade tariffs, interest rate expectations). Renewed risk appetite or regulatory approvals could trigger a renewed phase of accumulation. Recent market commentary noted the crypto market declined amid US-China trade tensions.
- Alternative digital-asset treasury models: Some firms are shifting toward holding or staking altcoins, or focusing on DeFi infrastructure rather than simply hoarding BTC/ETH. Identifying such firms early might provide asymmetric opportunities.
Conclusion
In summary, the recent sharp slowdown in corporate accumulation of Bitcoin and Ethereum by public treasury companies marks a notable inflection point in the institutional crypto ecosystem. While earlier in the year the narrative of companies buying and holding crypto offered comfort to markets, the pause now signals that even professional treasurers are adopting a wait-and-see stance. For crypto investors searching for the next income source or practical blockchain use-case, the takeaway is clear: the “easy institutional demand” tail-wind may be fading, and more selective, utility-driven or differentiated strategies will likely dominate the next leg of opportunity. In this more cautious environment, investors should sharpen their conviction, scrutinize corporate behaviour, and focus on protocols and assets with real ecological or yield-based business models—rather than relying solely on a re-run of the large-scale treasury buy-up story.
