Bitcoin (BTC), Corporate Accumulation Speed 'Rapidly Cools'...Wallets Close Due to Fear of Impairment Loss

▲ Bitcoin (BTC)

The pace of Bitcoin purchases by companies has sharply slowed down over the past three months, clearly indicating a stagnation in corporate capital inflow due to accumulated book losses.

According to crypto media outlet Cointelegraph on September 17 (local time), the amount of Bitcoin (BTC) purchased by corporate treasury departments, including public and private companies, amounted to only 59,000 BTC in the last three months.

Based on data from the crypto treasury statistics platform Bitcoin Treasuries, the total Bitcoin holdings of companies expanded to approximately 1.1 million BTC, but the quarterly buying speed significantly declined. In contrast to the previous quarter's surge in purchases by hundreds of thousands, the increase over the last three months was only 59,000 BTC. This analysis suggests that companies' additional capital expenditure has sharply contracted as Bitcoin prices are stuck in a box range and the period of book impairment losses has lengthened.

Excluding large adopting companies, led by MicroStrategy, the number of new companies adding Bitcoin to their reserve assets remained limited. Market experts cited increased pressure for risk management at the board level as a key reason, as Bitcoin repeatedly fluctuated around the $75,000 mark, hovering near the average purchase price of major companies or entering some unrealized loss territory.

In the market, the passive attitude of corporate treasury departments is pointed out as a major factor hindering short-term price recovery. As large-scale buying by companies, along with ETF fund inflows and outflows, was one of the two main pillars supplying market liquidity, it is observed that aggressive additional accumulation by companies will be difficult to resume until the pressure from book impairment losses is resolved and further regulatory clarity is secured.

[Article Key Summary]

-The amount of Bitcoin (BTC) purchased by global companies in the last three months amounted to only 59,000 BTC, a sharp slowdown compared to the previous quarter.

-Due to price stagnation and accumulated book impairment losses, the entry of new companies, apart from existing leading companies like MicroStrategy, has stagnated.

-As the slowdown in institutional and corporate capital inflow continues, regulatory clarity and price recovery are required to secure additional upward momentum.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*