Public Companies’ Bitcoin Purchases Plummet from Over 100,000 BTC to 5,900
Public companies purchased only 5,900 Bitcoin in the last three months, whereas this amount had exceeded 100,000 BTC in the same period last year.
Bitcoin‘s purchasing pace by public companies has slowed significantly as it tries to recover. According to Glassnode data, corporate treasuries added approximately 5,900 Bitcoin (BTC) in the last three months. This amount fell well short of the purchases of over 100,000 BTC made in the comparable period of the previous year.
Calculated at a price of approximately $76,400, the total value of recent purchases is around $451 million. The value of purchases in the same period last year had exceeded $8.9 billion when the Bitcoin price was over $100,000.
Strategy accounted for the bulk of the purchases
Nasdaq-listed Strategy accounted for the majority of the purchases over the last three months. The company purchased 4,603 BTC at the end of August. Nevertheless, total institutional demand failed to match the strong pace of last year.
Glassnode calculates the average entry level for public companies into Bitcoin at $80,500. This level is approximately 6 percent above the current spot price. Thus, corporate treasuries still appear to be at a loss in terms of their average costs.
Although the Bitcoin price recently surpassed the $80,500 level, it could not maintain this gain. Glassnode states that if this level is regained, corporate treasuries could, on average, turn a profit, and a portion of the potential selling pressure in the market could subside.
According to Bitcoin Treasuries data, the total Bitcoin holdings of 181 public companies are at approximately 1.22 million BTC. Strategy stands as the group’s largest holder by far with 845,050 BTC. Tokyo-based Metaplanet is also among the companies holding the most Bitcoin.
Other Bitcoin demand indicators are also mixed
U.S.-listed spot Bitcoin ETFs have attracted billions of dollars in inflows since early August. However, SoSoValue data shows that these funds are still down approximately $1 billion in total since the beginning of the year.
According to CoinGlass data, the Coinbase premium has remained mostly negative since May, except for a brief surge on September 5. This situation indicates that the Bitcoin price on Coinbase has remained lower compared to the offshore exchange Binance, and that U.S.-based buyer demand is weak compared to other regions.
The total stablecoin supply, monitored as one of the indicators of new money entering the crypto market, remained flat in the $300-$310 billion range throughout the year. The fact that the supply has not significantly increased in recent weeks indicates that the new capital inflow accompanying the recovery in Bitcoin has remained limited.