Bitcoin DATs Vanish as Institutional Support Falters

According to David Duong, Coinbase’s Head of Institutional Research, Bitcoin digital asset treasury companies (DATs) have “largely ghosted” the market since the October 10 drawdown. Even during periods of brief market recovery, these institutional players have shown minimal signs of re-engagement, with BTC buying activity falling to near year-to-date lows over the past two weeks. This retreat suggests limited confidence among the large institutional players who typically provide substantial market support during periods of conviction.

The muted participation from Bitcoin DATs has created a concerning vacuum in institutional support. Duong explained that the only consistent corporate buying activity since the correction has come from Ethereum-focused DATs, though even this demand has been narrowly concentrated. The research identifies Bitmine (BMNR) as the primary driver of ETH buying, with smaller contributions from other funds. Coinbase warned that if BMNR slows or halts its purchases, the apparent corporate bid for Ethereum could quickly evaporate.

This concentration risk in Ethereum buying, combined with the broader retreat of Bitcoin DATs, has led to a cautious stance from major balance sheets following the leverage washout. The current market structure leaves crypto markets particularly fragile at existing support levels, warranting a more defensive short-term positioning according to Coinbase’s analysis.

The institutional pullback extends beyond anonymous DATs to some of crypto’s most prominent corporate buyers. Crypto analyst Maartunn noted earlier this week that Michael Saylor-led MicroStrategy’s once-aggressive Bitcoin accumulation has slowed dramatically in recent months. After dominating headlines with billion-dollar allocations and weekly purchases exceeding 10,000 BTC at its 2024 peak, the firm briefly reduced its buying pace to just around 200 BTC per week.

While Maartunn emphasized that MicroStrategy’s long-term conviction in Bitcoin remains intact, the company’s ability to sustain large-scale purchases has clearly weakened. The analyst noted that MicroStrategy “is no longer buying big, but they’re still buying,” highlighting the company’s recent $43.4 million acquisition of 390 BTC on Monday. This represents a significant scaling back from the company’s previous accumulation strategy that made it the world’s largest corporate Bitcoin holder.

The slowdown from MicroStrategy, combined with the broader DAT retreat, signals a notable shift in institutional behavior following the October correction. Where once corporate buyers provided consistent market support, their current cautious approach leaves a significant gap in demand that retail investors and smaller institutions may struggle to fill.

Despite the broader institutional retreat, some publicly traded companies continue to expand their crypto treasury operations. Prenetics Global, a Nasdaq-listed health tech company, has completed a $48 million equity raise that was oversubscribed, specifically aimed at bolstering its Bitcoin treasury reserves while scaling up its IM8 supplement brand. The offering attracted strong interest from crypto-focused investors including Kraken, Exodus, Jihan Wu’s GPTX, DL Holdings, and American Ventures.

The Prenetics raise saw tennis star Aryna Sabalenka and Hong Kong business magnate Adrian Cheng deepen their investments, while football legend David Beckham maintains his shareholding. The company revealed it could receive up to approximately $216 million if all associated warrants are exercised, providing substantial capital for further Bitcoin acquisition.

In a separate development, Nasdaq-listed American Bitcoin Corp., founded by Eric and Donald Trump Jr., has significantly grown its Bitcoin holdings by acquiring 1,414 BTC worth more than $160 million. The company now owns a total of 3,865 BTC valued at approximately $450 million as of October 24, sourced from both mining operations and open-market purchases. According to BitcoinTreasuries data, this latest accumulation places American Bitcoin Corp among the top 26 public holders of the cryptocurrency globally, ranking just behind Gemini Space Station and ahead of OranjeBTC.

The current divergence in corporate crypto strategy highlights the evolving nature of institutional participation in digital assets. While established buyers like Bitcoin DATs and MicroStrategy have pulled back, new entrants like Prenetics Global and American Bitcoin Corp continue to build positions, suggesting that the corporate Bitcoin narrative remains compelling for some balance sheets despite recent market volatility.

However, the concentration of Ethereum buying around a single player, Bitmine (BMNR), represents a significant vulnerability. Should BMNR reduce or halt its purchasing activity, the apparent institutional demand for Ethereum could quickly dissipate, potentially triggering broader market weakness. Similarly, the retreat of traditional Bitcoin DATs leaves the market without its usual institutional cushion during periods of price stress.

The current market structure, characterized by selective institutional participation and concentrated buying activity, suggests continued volatility ahead. As Coinbase’s David Duong concluded, the combination of muted BTC DAT participation and concentrated ETH buying warrants a defensive short-term positioning until broader institutional confidence returns to pre-October levels.