Bitcoin Treasury Model 'Breaking' Amidst 10% Institutional Holdings Drop

Institutional investors in Bitcoin have been cutting their holdings over the past three months. Data from CryptoQuant shows that combined institutional exposure, including trusts, exchange-traded funds (ETFs), and closed-end funds, has fallen from 1.33 million to 1.20 million BTC.

The drawdown is attributed to the decline of the Bitcoin treasury model, where company valuations fall below net asset value. This makes financing dilutive, weakening the mechanism that once amplified demand through a reflexive financing loop.

CryptoQuant highlights several Bitcoin treasury companies with stock trading below their NAV, including Strategy, which holds the largest Bitcoin treasury of any public corporation. The company sold 1,638 BTC last week.

The Coinbase Premium index has been negative for a record 93 days, indicating a loss of institutional demand and a prerequisite for a price recovery. Analysis warns that until the premium flips positive, institutional buying from U.S. investors appears muted, suggesting a demand shortage rather than aggressive selling.