In Q1 2025, public companies significantly increased their Bitcoin purchases, but the price of the cryptocurrency continued to fall, raising questions about the reasons for this trend.
Major Purchases by Tether and MicroStrategy
In a surprising move, Tether added 8,888 BTC to its holdings, bringing the total to 92,646 BTC. Meanwhile, MicroStrategy, the largest corporate Bitcoin holder, purchased an additional 81,785 BTC in Q1, spending over $8 billion. Other companies also made significant purchases: The Blockchain Company added 605 BTC, Semler Scientific increased its holdings by 1,108 BTC, and Metaplanet bought 2,285 BTC.
Who Is Planning to Buy Next?
CryptoQuant reports that some companies are preparing to further expand their Bitcoin portfolios. Marathon Digital is planning a $2 billion stock sale to fund more BTC purchases. GameStop has also proposed a $1.3 billion convertible note offering, possibly indicating plans to incorporate Bitcoin into its strategies.
Why Is Bitcoin's Price Falling?
Despite significant corporate buying, Bitcoin's price fell by 12% in Q1. CryptoQuant attributes this decline to two major factors. First, long-term holders sold off 178,000 BTC, creating significant sell pressure. Second, there was an outflow of approximately $4.8 billion from Bitcoin ETFs, exacerbating the situation.
In conclusion, despite significant corporate purchases, the market remains under pressure due to sales by long-term holders and ETF outflows. However, if selling slows down, prices could see a recovery.
