Bitcoin And Ethereum Treasuries Haven't Been Buying As Usual Since The Crash

Crypto treasury companies are taking a step back after the recent market downturn earlier this ￰0￱ firms, which hold large amounts of Bitcoin and Ethereum on their balance sheets have nearly stopped buying since prices tumbled on October ￰1￱ slowdown shows an ongoing sense of caution across the sector. Coinbase’s Head of Institutional Research, David Duong, noted that Bitcoin buying activity among treasury companies dropped to the lowest level this year and has yet to ￰2￱ Buying Halts as Confidence Weakens The pause in Bitcoin purchases by crypto treasury companies is a clear sign that large firms are uncertain about market ￰3￱ organisations typically act as strong buyers when prices dip and help to stabilise ￰4￱ silence now indicates that they have limited faith in any near-term ￰5￱ described these companies as “heavy hitters with deep pockets.” He explained that their lack of activity shows caution, even at current support ￰6￱ across crypto treasury companies have been dropping |).

This means that their market caps have fallen under the worth of their crypto ￰7￱ firm Metaplanet is a major example of this ￰8￱ reporting more than 115% growth in Bitcoin-related revenue in the third quarter, its modified net asset value recently slipped to 0.99 before recovering ￰9￱ company’s shares have plunged around 70% since June and have erased the premium once tied to its Bitcoin-focused ￰10￱ a company’s NAV falls below one, it suggests investors no longer value the business above its underlying ￰11￱ drop shows reduced confidence in the idea that holding crypto on corporate balance sheets automatically adds ￰12￱ Digital Assets reports that non-mining public companies now hold more than 700,000 BTC and 3 million ETH combined.

ETHZilla’s Sale Shows Shifting Priorities ETHZilla, another major Ethereum treasury firm recently sold $40 million in ETH to fund stock buybacks after its shares traded at a 30% NAV ￰13￱ move might help reduce discount pressure, but it also shows how some firms are forced to choose between supporting their stock or maintaining their crypto ￰14￱ Edwards of Capriole Investments outlined three possible paths for crypto treasury companies now trading below NAV, and none of them are ￰15￱ first is that they can choose to sell their ￰16￱ approach raises cash but can hurt both the business and the general market by pushing prices ￰17￱ second is that they can seek acquisition by merging with larger firms or funds.

However, this would lead to more market consolidation. Finally, they can choose to increase leverage, because borrowing against crypto assets to boost returns can attract investors. However, this approach exposes companies to heavy risk if markets drop ￰18￱ warned that growing leverage could set the stage for another crisis if asset prices weaken.