Despite substantial Bitcoin (CRYPTO: BTC) accumulation by companies and ETFs, prices have yet to rise significantly. However, an expert believes that treasury-focused companies may need to maintain a minimum BTC holding to ensure long-term survival.
What Happened: Crypto investor and The Big Bitcoin Book co-author Fred Krueger sparked conversation on Tuesday with a bold analogy – Bitcoin treasury companies are like sharks; they must keep moving (buying) to survive.
In his X post, Krueger said these companies need to purchase 10,000 BTC every month just to maintain strategic momentum. “If they stop, the strategy fails,” he added, likening the aggressive Bitcoin acquisition behaviour to a feeding frenzy that persists regardless of price levels.
He pointed to Michael Saylor's BTC accumulation strategy for his company Strategy (NASDAQ:MSTR), which has involved purchasing at least 10,000 BTC every two months since 2024, as a blueprint being emulated.
BitcoinTreasuries.net data shows 3.44 million BTC is held across various entities, including public/private companies, ETFs, custodians, governments, and smart contracts. ETFs and funds now hold the largest share, followed by public companies and governments. Over the past 30 days, BTC held in treasuries rose 3.9%.
The BTC held by tracked entities increased by 28 BTC in the past month, with 236 BTC now held across these institutional wallets.
Also Read: Bitcoin, Ethereum Lead $1.9 Billion Digital Asset Inflows Amid Global Tensions, CoinShares Finds
Why It Matters: Despite aggressive accumulation by institutions, Bitcoin's price hasn't budged significantly. In an X post on Tuesday, Daan Crypto Trades noted that Spot Bitcoin ETFs saw over $5 billion in inflows last month. This includes $2.2 billion from Saylor's Strategy, and another $2 billion+ from firms like GameStop (NYSE:GME).
Despite this more than $10 billion institutional demand, Bitcoin's price remains flat, Daan called it a “double-edged sword.” If inflows persist, supply could be exhausted, making it bullish. But if inflows slow, it may mark a local top, as seen in past ETF-driven cycles.
Another trader, Jelle, highlighted a string of corporate buyers over the past week: U.S.-based F Street announced daily Bitcoin purchases, targeting a total investment of $10 million, and Sweden-based H100 Group secured $10 million to purchase BTC.
Singapore-based Davis Commodities announced plans to purchase $12 million worth of BTC and UK-based TAO Alpha completed a 5 million GBP raise to purchase BTC, kickstarting a new BTC treasury policy.
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