Bitcoin Treasury Model 'Breaking' Amidst 10% Decline in Institutional Holdings

Bitcoin institutional investment vehicles have seen a significant reduction in their BTC holdings over the past three months, falling by 10% from 1.33 million to 1.20 million.

This decline is attributed to the weakening of the Bitcoin treasury model, where company valuations fall below net asset value (NAV), making financing dilutive.

CryptoQuant data shows that several major Bitcoin treasury companies are facing a discount on their stock prices compared to the value of their BTC holdings, with Strategy being one notable example.

Strategy sold 1,638 BTC last week, and its stock trading below NAV has led to concerns about the future of the company's treasuries.