Bitcoin Treasury Companies Reach Record Holdings, But Institutional Demand Weakens
Bitcoin (BTC) treasury companies have reached a record holding of 840,000 BTC in August, marking a significant milestone in the cryptocurrency market. However, underlying data reveals a concerning trend of weakening institutional demand for the digital asset.
According to a recent report by CryptoQuant, purchase volumes and transaction sizes among these companies have plummeted to multi-year lows, indicating a shift in market dynamics. Strategy, a key player in corporate Bitcoin accumulation, currently holds 637,000 BTC, representing 76% of total treasury holdings. The remaining 203,000 BTC is controlled by 32 other companies in the space.
The surge in holdings can be traced back to the aftermath of the November 2024 US Presidential Election, during which Strategy more than doubled its position from 279,000 to 637,000 BTC. Similarly, other companies expanded their holdings by 13-fold, from 15,000 to 203,000 BTC during the same period.
A closer look at the data reveals a decline in purchase volumes and transaction sizes among these treasury companies. Strategy, for instance, acquired 3,700 BTC in August, a significant drop from the 134,000 BTC purchased in November 2024. Other companies also saw a decrease in their Bitcoin acquisitions, with average transaction sizes falling to 1,200 BTC for Strategy and 343 BTC for other entities.
The report suggests that liquidity constraints or market hesitation among institutional buyers may be contributing to the decrease in transaction sizes. Monthly holdings growth has also decelerated sharply, with Strategy experiencing a drop from 44% in December 2024 to just 5% in August. Other treasury companies have witnessed a similar trend, with monthly growth declining from 163% in March to 8% in August.
Despite maintaining a relatively high transaction frequency, with 46 transactions in August, compared to just 14 in November 2024, the overall appetite for Bitcoin among institutional investors appears to be waning. The decline in purchase volumes and transaction sizes signals a potential shift in market sentiment and investment strategies among these companies.
The regulatory landscape is also posing new challenges for the treasury market, as Nasdaq recently implemented shareholder approval requirements for equity issuances used to purchase cryptocurrencies. This rule change aims to address the practice of public companies selling equity to fund token purchases, potentially slowing down the rapid capital deployment seen in 2025.
In addition, Sequans Communications became the first Bitcoin treasury company to execute a reverse stock split, adjusting its American Depositary Shares structure to meet NYSE listing requirements. Despite controlling 3,205 BTC valued at approximately $355 million, the company’s stock has declined by 75% this year, raising concerns about potential asset sales to support share prices.
In conclusion, the current trends in institutional Bitcoin accumulation mirror patterns seen during the 2020-2021 cycle, where rapid growth eventually gave way to a deceleration phase. The data suggests that the market may be entering a period of slower growth and evolving dynamics among Bitcoin treasury companies, signaling a potential shift in the landscape of institutional crypto investments.