What to know:
- Strategy sold bitcoin for the first time since December 2022, ending a streak that helped define the crypto treasury trade.
- Most digital asset treasury firms have halted purchases or started selling assets since the market turned lower in October.
- Bitmine and Strive remained among the few companies still actively buying over the past month.
Strategy (MSTR), a company famous for its practice of buying and holding bitcoin – a strategy many other companies have since copied – recently sold around $2.5 million worth of bitcoin for the first time in over a year.
The move came as the scheme has faced major headwinds since gaining popularity last year.
As an analyst, I’ve been watching a trend where many companies followed Michael Saylor’s lead and invested in cryptocurrencies like Bitcoin and Ether by raising capital through stocks and debt. This strategy initially seemed successful last year, benefiting from the rapid rise in crypto prices, which allowed their stock to trade at a higher value than the actual assets they held.
Things shifted dramatically when cryptocurrency markets reached their highest point in October. As token values dropped and company stocks declined below their actual worth, many firms struggled to secure funding at reasonable rates, and some saw their stock prices plummet by over 90% from their highest levels. This led some companies to halt purchases altogether, while others began selling off their assets.
Despite everything, Strategy continued to invest in Bitcoin, with its Executive Chairman, Michael Saylor, consistently recommending a long-term buying and holding approach.
However, this didn’t last. Strategy hinted at a possible sale in early May and confirmed the first one on June 1st. Now that Strategy has stopped its buying spree and other firms have pulled back, some believe this signals the end for treasury firms, as there are significantly fewer active buyers remaining.
Still buying
Despite the downturn, some companies are still making purchases. One of these is Bitmine (BMNR), a company focused on Ethereum holdings and led by Tom Lee.
Last week, the company bought around $53 million worth of Ethereum (ETH), bringing its total holdings to over 338,000 tokens. As of today, those holdings are worth approximately $665 million. With more than 5.4 million ETH, the company is now the largest corporate owner of the cryptocurrency.
Tom Lee mentioned his company intends to buy Ethereum at a slower rate as they get closer to their target of holding 5% of all ETH in circulation.
Bit Digital, a company focused on Ethereum, resumed buying ETH in May with a $20 million purchase. This marked their first investment in the cryptocurrency since October.
Some bitcoin-focused firms are still buying.
In May, Strive (ASST) revealed it had bought around 1,944 Bitcoin over several transactions, totaling approximately $150 million. Similarly, Japan’s Metaplanet announced in early April that it had purchased 5,075 BTC.
Hyperliquid Strategies (PURR), a company that invests in HYPE – the token for the popular Hyperliquid exchange – reported spending $216 million to purchase 7.3 million tokens from early December to late April. Because the price of HYPE has since reached new highs, the value of that investment has more than doubled.
As a crypto investor, I’ve been watching Strategy closely. Even after selling some holdings last week, they were still a huge buyer of Bitcoin throughout May. They picked up over 25,000 BTC, spending more than $2 billion to do so. It’s good to see continued investment at that scale.
The sellers
On the other hand, several firms have been reducing crypto holdings recently.
Several companies with bitcoin holdings have recently sold portions of their cryptocurrency. Nakamoto Holdings (NAKA), led by David Bailey, sold 284 BTC in March, representing around 5% of their total holdings. Empery Digital sold 370 BTC in April to pay off a loan, and Genius Group (GNS) sold all 84 of its remaining BTC in April, using the funds to reduce $8.5 million in debt.
Meanwhile, others have abandoned the treasury model entirely.
As a crypto investor, I’ve been watching Forum Markets – they used to be called ETHZilla – and they made a big move earlier this year. They sold off around $114 million in Ether and are now really focusing on tokenizing different assets. It’s a pretty significant change in direction for them.
In February, VivoPower changed its business direction. Originally intending to create a treasury focused on XRP, the company now plans to concentrate on data centers and infrastructure for artificial intelligence, selling off its investments and holdings related to Ripple and XRP.
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2026-06-01 20:31