Crypto Treasury Firms Dem Slash BTC & ETH Buys Amid NAV Discounts
Crypto treasury companies don reduce their Bitcoin and Ethereum purchases sharply since market crash wey happen for October 10. These crypto treasury companies don pause most BTC buys because dem dey fear leverage wahala and net asset values (NAV) don dey drop, so sector support don weak. Ether acquisitions slow too, as BitMine Immersion Technologies alone don spend $1.9 billion to buy 483,000 ETH. Without BitMine activities, total ETH treasury purchases go turn to negative. Some companies like Metaplanet and ETHZilla dey trade below NAV now, dem dey sell assets and do share buybacks. Analysts dey warn say if BitMine reduce how dem dey buy, corporate demand fit collapse, this one go increase volatility and risks for traders.
Bearish
Crypto treasury wey don stop dey buy don show say demand for Bitcoin and Ethereum dey weak, e dey shake price support. For short term, as dem stop to buy BTC and ETH, e go increase market wahala as company treasury no dey buy steady again. If top buyer BitMine Immersion slow down how e dey buy Ethereum, market demand fit reduce more, wey go bring more pressure to push price down. For long term, constant NAV discount and leverage wahala fit stop new treasury money enter, make both assets dey vulnerable to price waka for market correction.