Bitcoin Buying Stalls as Crypto Treasury Stocks Tumble
Treasury firms purchased just 14,800 Bitcoins in August, far below the 66,000 acquired in June. The average purchase size fell 86%.
Quick overview
- Digital asset treasury firms are experiencing early signs of fatigue, with falling share prices and a slowdown in token purchases.
- Last week, shares of 15 firms in this sector dropped an average of 15%, with some companies seeing declines of nearly 50% or more.
- In August, these firms purchased only 14,800 Bitcoins, a significant decrease from 66,000 in June, indicating a loss of traction in their business model.
- Despite the downturn, some speculative activity persists, as seen with Eightco Holdings' shares surging over 3,000% following a major acquisition.
The rise of digital asset treasury firms is showing early signs of fatigue. These publicly traded companies, whose business model revolves around acquiring cryptocurrencies, became an attractive vehicle for investors seeking indirect exposure to Bitcoin, Ether, or Solana.
However, falling share prices and a slowdown in token purchases suggest that confidence in the trend is waning. Last week, shares of 15 such firms fell an average of 15%, with extreme cases including ALT5 Sigma, down nearly 50% in a few days, and Kindly MD, which has lost around 80% since May. Even sector leaders like Strategy and Japan’s Metaplanet suffered declines, indicating that not even the top players are immune to changing sentiment.
The cooling trend is also evident in the numbers. Treasury firms purchased just 14,800 Bitcoins in August, far below the 66,000 acquired in June. The average purchase size fell 86% from its 2025 peak, and the Bitcoin accumulation rate dropped from 163% in March to just 8% in August. This points to a business model losing traction due to market saturation and a lack of differentiation among players.
Still Some Speculative Fervor
Despite the slowdown, pockets of speculative activity remain. On Monday, Eightco Holdings shares surged more than 3,000% after announcing the acquisition of Worldcoin and adding analyst Dan Ives to its board. For some investors, the prospect of a leveraged publicly traded vehicle with cryptocurrency exposure remains appealing.
Meanwhile, the financial ecosystem around these firms continues to expand. Lenders and brokers have developed products such as token-linked bonds and Bitcoin-backed loans, providing liquidity and flexibility but also introducing additional risks on already volatile assets.
With around a hundred firms created in just a few months—including some converted from unrelated businesses like nail salons or cannabis ventures—market saturation is apparent. Industry experts anticipate a consolidation process, where stronger firms absorb the portfolios of weaker players.
., as falling stock prices and reduced token purchases erode the initial enthusiasm.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
