Recent research from NYDIG reveals a concerning shift in investor sentiment towards firms that built their reputation by accumulating Bitcoin. While these companies still hold substantial reserves, the pace of new acquisitions has significantly slowed down, leading to a decrease in market premiums despite the Bitcoin price approaching record highs. 🤯 📉
The sector now controls over 840,000 BTC, with Strategy alone holding more than 637,000, but purchases have shrunk dramatically. Strategy’s monthly buys, once as high as 14,000 coins in volume, dropped to just 1,200 in August. Similarly, smaller competitors reduced their acquisitions by over a factor of five compared to earlier this year. This decline marks a stark shift from the rapid growth experienced earlier in the year, with acquisition rates now settling at single-digit percentages.
Why Are Valuations Shrinking? 📉 🤔
Investors appear less willing to pay premiums for shares in these firms despite the value of their Bitcoin holdings. The reasoning boils down to: fears about potential Bitcoin unlocks, profit-taking after a strong price rally, new share issuances diluting value, and a lack of differentiation from traditional