Recent research indicates that companies with substantial bitcoin holdings are losing investor confidence. The volume of new acquisitions has dramatically decreased, raising questions about the sector’s future.
Slowing Appetite for BTC
The sector now controls over 840,000 BTC, with Strategy holding more than 637,000. However, the pace of new acquisitions has plummeted: monthly purchases by Strategy, which once reached 14,000 coins, dropped to just 1,200 in August.
Why Valuations Are Shrinking
Investors appear less willing to pay a premium for shares in these firms compared to the value of their Bitcoin. NYDIG’s Greg Cipolaro points to several reasons: fears about supply unlocks, profit-taking after a strong BTC rally, new share issuances diluting value, and a lack of distinction between treasury strategies.
What Could Stabilize the Sector
Cipolaro argued that buyback programs could help restore confidence by reducing share float and reinforcing NAV. Without that, he warned, upcoming IPOs and merger-driven listings could trigger another wave of selling pressure from early backers eager to cash out.
The digital asset sector, which surged onto Wall Street last year, faces challenges that suggest simple 'buy and hold' strategies may no longer suffice. Firms need to rethink their strategies to engage investors.
