Strategy (MSTR), the company whose Bitcoin accumulation strategy inspired a new generation of so-called digital asset treasury companies, has been sold. $BTC For the first time since December 2022, around $2.5 million worth of tokens were offloaded.
The move comes as the plan has faced significant headwinds since gaining popularity last year.
Dozens of companies are raising capital through stock and bond issuance, and are using Bitcoin and Ether ($ETH) and other cryptocurrencies, aiming to recreate Michael Saylor’s playbook. The model worked for a while last year as crypto prices soared and government bonds traded at a premium to their cost.
However, the situation changed completely when the cryptocurrency market reached its peak in October. As token prices fell and treasury stock fell below net asset value, many companies lost the ability to raise capital on attractive terms, with some stocks down more than 90% from their peaks. Some people stopped buying, while others became sellers.
Through all of this, Strategy remained strong and continued to buy as executive chairman Michael Saylor continued to advocate for buy-and-hold.
But it didn’t last long. Strategy first hinted at a potential sale in early May, before finally reporting its first sale on Monday, June 1st. Some may think this is the final nail in the coffin for the Treasury, with the list of active buyers narrowed significantly as Strategy Inc. breaks cumulative funding records and many of its peers exit.
Still buying
However, the remaining few companies continue to buy. That includes Tom Lee’s Ethereum finance company, Bitmine (BMNR).
The company has approximately $53 million worth of $ETH And by May, more than 338,000 tokens had been accumulated, worth about $665 million at current prices. Holds over 5.4 million $ETHbecoming the largest corporate holder of the token.
However, Tom Lee said the company plans to slow the pace of accumulation as it approaches its goal of owning 5% of the stock. $ETH supply.
Another Ethereum-centric Bit Digital (BTBT) returned to the market in May with $20 million worth of $ETH. This is the company’s first acquisition since October.
Some Bitcoin-focused companies are still buying.
Strive (ASST) reveals approximately 1,944 acquisitions $BTC It was spread across multiple purchases in May and cost about $150 million. Japan’s Metaplanet also reported an acquisition in early April, acquiring 5,075 at the time. $BTC.
HyperLiquid Strategies (PURR), a purchasing-focused finance company $HYPEThe company, the native token of the red-hot blockchain-based exchange and its ecosystem, announced it spent $216 million to purchase 7.3 million tokens from early December to the end of April. given $HYPEhas soared to an all-time high, and its return on investment has more than doubled since then.
Despite last week’s selloff, Strategy remained one of the largest sources of Bitcoin demand through May, purchasing over 25,000 $BTC For over $2 billion.
seller
On the other hand, some companies have recently reduced their holdings of virtual currencies.
David Bailey’s Bitcoin treasury firm Nakamoto Holdings (NAKA) sold 284 bits. $BTC In March, it accounted for about 5% of the company’s holdings. Empery Digital sold 370 units $BTC To repay the term loan in April. Genius Group (GNS) announced in April that it had liquidated the remaining 84 companies. $BTC to pay off $8.5 million in debt.
Meanwhile, some companies have abandoned financial models altogether.
Forum Markets, formerly known as ETHZilla, shifted its focus to tokenization earlier this year after selling around $114 million worth of Ether.
VivoPower is $XRP-In February, we shifted our focus to data centers and AI infrastructure, and made Ripple-related investments. $XRP Collection.
Read more: Digital asset treasury departments need to reap the benefits now
