"Buying Pressure from Bitcoin-Holding Companies Has Dropped Sharply"

Son Min

Summary

K33 Research said the average daily purchases of corporate Bitcoin hoarders have fallen sharply recently.
The report explained that some Bitcoin-holding companies have a reduced ability to make additional purchases due to falling market capitalizations.
It said future Bitcoin upside momentum may rely on ETFs and retail investor demand.

An analysis said that companies' Bitcoin (BTC) hoarding strategies are losing steam.

On the 17th (local time), The Block reported that K33 Research said in a report, "The average daily purchases by corporate Bitcoin hoarders this month were 1428BTC, the lowest level since last May."

It said that declines in companies' stock prices had a particularly adverse effect. The report said, "Currently, one of the four publicly listed companies holding Bitcoin is trading at a market capitalization lower than the value of the Bitcoin it holds," adding, "In this case, the ability to raise additional capital to buy Bitcoin is greatly reduced."

According to Bitcoin Treasury data, KaindlyMD's market capitalization plunged 96% from its peak. In addition, companies such as TwentyOne, Semler Scientific, and Smarter Web Company recorded mNAV( market value relative to net asset value) below 1. Strategy's stock Bitcoin premium also plunged to 1.26, marking the lowest level since March last year. K33 explained, "Over the past year, Strategy has been aggressively buying Bitcoin, but now its buying capacity has been greatly curtailed."

Furthermore, it said Bitcoin's upside momentum may have to rely on exchange-traded funds (ETF) and demand from retail investors. The report said, "Listed companies' Bitcoin holdings have already exceeded 1,000,000," and added, "Going forward, the structure may revert to relying on ETF and retail investor demand rather than corporate hoarding."

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