Corporate crypto buyers retreat following October’s steep correction, signaling a pause in institutional confidence
Public companies holding Bitcoin and Ethereum have largely halted new purchases since the sharp market decline earlier this month, reflecting a wave of caution among digital asset treasury firms.
According to David Duong, Global Head of Investment Research at Coinbase Institutional, Bitcoin treasury activity has fallen to near year-to-date lows since the October 10 crash, when the crypto market erased billions in value overnight. “Over the last two weeks, BTC buying by DATs fell to near YTD lows and has not meaningfully recovered, even on green days,” Duong said.
Between Oct. 10 and 11, Bitcoin plunged by 9%, sliding from around $121,500 to below $110,500, before briefly touching $105,000. Prices have since stabilized near $114,000, but trading volumes and institutional inflows remain muted.
Caution among corporate treasuries
Duong explained that companies traditionally known for large Bitcoin allocations appear hesitant to resume buying, a shift that “signals limited confidence on their part.” The retreat highlights weaker conviction from corporate players who once fueled the crypto accumulation trend.
The slowdown also comes as valuations of several crypto treasury stocks have dropped close to the value of their underlying assets, erasing much of their speculative premium from earlier rallies.
BitMine breaks the trend
However, not all firms are stepping back. BitMine Immersion Technologies, a major Ethereum treasury company, has emerged as the sole consistent buyer during the downturn. Duong noted that BitMine spent over $1.9 billion to purchase nearly 483,000 ETH since Oct. 10, keeping total weekly ETH purchases by corporate treasuries in positive territory.
Ether mirrored Bitcoin’s fall, dropping over 15% to $3,686 before recovering slightly above $4,100.
Still, Duong warned that if BitMine slows or pauses its accumulation, market support could quickly weaken. “We think this warrants more cautious positioning in the short term. The market appears more fragile when the biggest discretionary balance sheets are sidelined,” he said.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.