Corporate Bitcoin Treasury Purchases Slow, Weighing on Crypto Markets

The dramatic slowdown in corporate treasury purchases of Bitcoin has become a central factor in the recent crypto market downturn. According to data from analytics provider CryptoQuant, Bitcoin treasury acquisitions plummeted to just 12,600 BTC in August and 15,500 so far in September. This combined total represents less than half the amount that firms acquired during the peak buying activity in July, removing what had been a critical demand floor for the market.

The decline in treasury activity has coincided with significant price drops across major cryptocurrencies. Bitcoin was recently trading at about $109,400, down more than 5% over the past week according to CoinGecko data, while Ethereum and other major altcoins have also fallen deeply into negative territory. At one point Friday, Bitcoin dropped below $109,000 for the first time since September 1, highlighting the market’s vulnerability without consistent corporate buying support.

Joe DiPasquale, CEO of crypto fund manager BitBull Capital, explained the mechanism behind this downturn: “When treasuries stop buying, it removes an important demand floor and undermines confidence in the balance-sheet-as-strategy narrative. At the same time, forced liquidations in derivatives and broader risk-off sentiment have accelerated the decline, creating a feedback loop that pressures both crypto assets and the equities tied to them.”

The cooling treasury activity has directly impacted companies that had embraced cryptocurrency accumulation as part of their corporate strategy. Share prices of several prominent treasury firms have plunged alongside crypto declines, with Solana treasury Helius Medical Technologies falling 38% over the past week and Ethereum-focused BitMine Immersion sinking more than 13% over the same period.

Even companies continuing their accumulation strategies haven’t been immune to the downturn. Bitcoin-minded Strategy—the originator of the pivot-to-crypto accumulation move—and Japan-based Metaplanet each fell about 9%, despite Metaplanet’s latest purchase of more than 5,400 BTC on Monday and a favorable analyst rating a day later. Michael McCluskey, CEO of Sologenic—which offers a decentralized exchange and related services—noted the correlation: “We’ve seen treasury accumulations cool off compared to the summer, when companies were buying at a record pace. That slowdown has coincided with softer prices in Bitcoin and other major cryptocurrencies, which makes sense given how much corporate demand was propping up the market.”

Adding to the challenges, financial regulators are now exploring unusually high trading volumes and dramatic share price increases among treasury companies according to The Wall Street Journal. This regulatory scrutiny, combined with market volatility, creates additional headwinds for firms that had positioned cryptocurrency accumulation as a core business strategy.

Despite the current market weakness, some analysts maintain optimism about Bitcoin’s longer-term prospects. Gerry O’Shea, head of global market insights at crypto asset manager Hashdex, wrote that Bitcoin could hit $140,000 or higher by year’s end, with corporate treasuries helping to spark a rally. “Corporate treasury adoption will remain a big part of this demand, even as many of these publicly traded companies face near-term headwinds from volatility and scrutiny from investors regarding their specific strategies,” he wrote.

However, the immediate future appears challenging. McCluskey of Sologenic warned that “in the short term, the absence of steady buying leaves the market more exposed to volatility.” This vulnerability comes at a time when markets were already jittery about macroeconomic uncertainties including inflation concerns, creating a perfect storm for cryptocurrency price declines.

The situation highlights the double-edged nature of corporate treasury adoption in cryptocurrency markets. While summer purchases helped fuel massive market gains, the subsequent slowdown has demonstrated how dependent prices had become on this specific source of demand. As companies navigate both market volatility and regulatory scrutiny, the treasury accumulation strategy faces its first significant test since gaining widespread attention earlier this year.