The $100 billion corporate Bitcoin surge is down to one buyer as other companies stop adding

The surge in corporate Bitcoin investments, which reached $100 billion, is losing momentum. While companies initially rushed to add Bitcoin to their treasuries, buying activity has drastically decreased, with MicroStrategy (formerly known as Strategy) now dominating purchases, accounting for 98% of all Bitcoin bought by treasury firms in the past month. Previously, companies outside of Strategy were responsible for 95% of net purchases. This shift is due to falling Bitcoin prices, which have eroded the value of holdings and made it harder for companies to raise capital through stock issuance. Many companies that bought Bitcoin near its peak are now facing unrealized losses, and some, like GD Culture, are even selling their holdings to fund share buybacks. The financing model that fueled this trend – using stock as a means to acquire more Bitcoin – is becoming less effective, leading to a more selective phase where only companies with strong balance sheets are likely to continue accumulating Bitcoin.

(Source：CryptoSlate)