Crypto Treasury Firms Slash BTC & ETH Buys Amid NAV Discounts
Crypto treasury companies have sharply reduced Bitcoin and Ethereum purchases since the October 10 market crash. These crypto treasury companies have paused most BTC buys amid leverage concerns and declining net asset values (NAV), leaving sector support fragile.
Ether acquisitions are equally slowed, with BitMine Immersion Technologies alone spending $1.9 billion to acquire 483,000 ETH. Without BitMine’s activity, total ETH treasury purchases would turn negative. Several firms, including Metaplanet and ETHZilla, now trade below NAV, prompting asset sales and share buybacks. Analysts warn that if BitMine eases its purchases, corporate demand could collapse, amplifying volatility and downside risks for traders.
Bearish
Stalled crypto treasury buying signals weakening demand for Bitcoin and Ethereum, undermining price support. In the short term, paused BTC and ETH purchases heighten volatility, as corporate treasuries no longer act as consistent buyers. If leading buyer BitMine Immersion slows its Ethereum acquisitions, market demand could contract further, increasing downside pressure. Over the longer term, persistent NAV discounts and leverage constraints may deter fresh treasury inflows, leaving both assets vulnerable to price swings in market corrections.