The cryptocurrency market is facing a new paradox where the Ethereum treasury trade has experienced a massive decline in monthly acquisition volumes since the August highs. According to a recent report by asset management firm Bitwise, purchases by digital asset treasuries (DATs) plummeted from 1.97 million Ether in August to just 370,000 ETH in November. Max Shennon, senior research associate at Bitwise, confirmed this Tuesday that “the ETH DAT bear continues,” signaling a clear slowdown in generalized institutional capital entry into the asset.
Despite this general contraction, data reveals that specific players with strong financial backing are swimming against the tide, executing massive purchases that defy the trend. BitMine Immersion Technologies, currently the largest corporate holder of the cryptocurrency, accumulated approximately 679,000 Ether valued at 2.13 billion dollars during the last month alone. This aggressive acquisition has allowed the company to complete 62% of its ambitious goal to control 5% of the total Ethereum supply, according to figures from Strategicethreserve. Additionally, the company maintains a cash reserve of 882 million dollars, suggesting that buying pressure from its side is far from over.
On the other hand, the financing structure for these acquisitions is evolving in unusual ways. Republic Technologies, formerly known as Beyond Medical Technologies, recently raised 100 million dollars through a convertible note with surprising terms: a 0% interest rate and no ongoing interest payments. This financial strategy eliminates the need to spend cash on debt service, mitigating the default risk that often affects digital asset companies. Thus, the Ethereum treasury trade is transforming into a high-stakes financial engineering game reserved for entities that can secure exceptional conditions.
Could the concentration of Ether in a few corporate hands distort the market long-term?
The divergence between the drop in general volume and whale accumulation has direct implications for the asset’s price and stability. While general interest wanes, crypto treasury stocks showed a notable recovery this Tuesday, led by entities focused on Ether. For example, EthZilla (ETHZ), which trades on the Nasdaq, recorded a 12.35% gain on the day, while BitMine shares rose 10.26%. This indicates that equity investors continue to see value in these companies as indirect exposure vehicles, despite the slowdown in direct treasury purchases reported by Bitwise.
Finally, the landscape suggests a market consolidation where only the strongest players survive and thrive. The Ethereum treasury trade appears to be purging itself of short-term speculators, leaving the field to corporations with long-term vision and solid balance sheets. It is expected that, if accumulation by entities like BitMine continues at this pace, the circulating supply of Ether available on exchanges will reduce significantly, which could catalyze a supply shock in the near future if retail demand returns.
