Corporate Bitcoin treasuries appear to be on pause, according to a Coinbase analysis. However, American Bitcoin and Strategy contradict this market view. The firms collectively acquired over $205 million in Bitcoin in recent days. This accumulation occurs despite warnings from Coinbase’s Global Head of Investment Research, David Duong.
American Bitcoin led the recent purchases. It acquired approximately 1,414 Bitcoin between September and October 24. This raises its total strategic reserve to 3,865 Bitcoin. On the other hand, Strategy, the business intelligence firm, also increased its holdings. The company bought 390 additional BTC between October 20 and 26, spending $43.4 million. Strategy’s total accumulation now amounts to 640,808 BTC.
The news directly contradicts a recent analysis by David Duong of Coinbase. Duong warned that digital asset treasury (DATs) companies “ghosted” following the October 10 dip. BTC purchases by DATs fell to near-year-to-date lows. Coinbase also noted that Ethereum purchases are driven almost entirely by a single entity, Bitmine. This raises concerns about the true depth of corporate demand.
Is corporate BTC demand truly fragile?
The Coinbase analysis suggests the market is fragile. Caution follows a $19 billion liquidation of leveraged positions earlier in the month. However, Bitcoin has recently recovered about 3%. This is due to softer-than-expected U.S. inflation data. These data reinforce expectations for Federal Reserve rate cuts. Prior Coinbase research indicated the crypto treasury economy has changed. It moved from guaranteed premiums to a “player-versus-player” competitive phase.
The movement is not limited to the U.S. In South Korea, Bitplanet announced plans to acquire 50 BTC. Additionally, Hong Kong-based Prenetics Global raised $150 million for its own treasury strategy. Strategy maintains access to billions in potential issuance capacity for future purchases. This shows that, although some big players are sidelined, corporate interest in Bitcoin continues to evolve.
