Bitcoin institutional investment vehicles have reduced their BTC holdings by 10% over three months, with analysis suggesting the Bitcoin treasury model is weakening as company valuations fall below net asset value. Coinbase’s premium index has been negative for a record 93 days, and corporate treasuries, such as those of Strategy, have sold significant BTC holdings.
CryptoQuant data shows combined institutional Bitcoin exposure fell from 1.33 million BTC to 1.20 million BTC since May, reflecting a broader shift in investor sentiment. Novaque Research analysts noted that the Bitcoin treasury model, which previously amplified demand through a financing loop, is losing effectiveness as market capitalisations dip below net asset value.
Coinbase’s premium index, a measure of demand relative to supply, has remained negative for 93 consecutive days, the longest streak on record. This follows a broader trend of institutional investors reducing exposure, with Binance’s premium index also showing weakness compared to Coinbase.
Strategy, a business intelligence software company with the largest Bitcoin treasury, reportedly sold 1,638 BTC in recent transactions. Its modified net asset value (mNAV), accounting for debt and preferred stock, stands at 1.03, suggesting a narrow discount to underlying assets.
FOUR, a Web3 marketing platform, highlighted that the lack of a positive premium indicates muted institutional buying from U.S. investors, pointing to a demand shortage rather than aggressive selling. However, the exact causes of the Coinbase Premium’s negative streak remain debated, with some attributing it to weak demand and others to increased selling pressure.
CryptoQuant cautioned that isolating the impact of treasury companies on institutional demand is complex, as broader market dynamics also influence holdings. Analysts continue to monitor whether the sector’s challenges represent a temporary correction or a more sustained shift in institutional strategy.
Written by Oliver Grant
Markets Desk
