Ethereum Treasury Purchases Plummet Dramatically
The Ethereum treasury trend is experiencing a spectacular reversal. According to Bitwise data, institutional ETH acquisitions have plunged from 1.97 million in August to just 370,000 in November 2024, marking an 80% collapse within three months. This brutal turnaround reflects the exhaustion of a model that had nevertheless attracted numerous companies at the beginning of the year.
Earlier in 2024, several firms had adopted a strategy inspired by the Bitcoin treasury playbook, massively accumulating Ether to diversify their treasury reserves. This approach seemed promising when demand far outstripped Ethereum’s monthly supply, creating an imbalance favorable to prices. Today, monthly purchases still exceed issuance by approximately 80,000 ETH, but the gap is narrowing dangerously.
Bitwise analyst Max Shannon compares this phase to an “altseason” coming to an end. The dynamics are reversing: premiums for companies holding ETH are declining, their purchasing power is weakening, and smaller structures can no longer keep pace. Without fresh capital to buy ETH, these companies are unable to attract investors, creating a vicious cycle of dilution and falling valuations.
Bitcrowd Crushes Competition and Concentrates the Market
One player now dominates the Ethereum treasury landscape: Bitcrowd. Led by Tom Lee, this company holds over 3.7 million ETH, approximately $13 billion at current prices. This amount exceeds the combined holdings of all other players, creating a worrying market concentration.
This dominance is explained by privileged access to capital. While small companies struggle to raise funds in an increasingly difficult environment, Bitcrowd continues to fuel its accumulation strategy. The company has been the largest ETH buyer since the beginning of the trend and maintains this position thanks to its financing capacity.
For competitors, the situation is becoming critical. Without fresh capital, buying ETH is impossible. Without purchases, attracting new investors is impossible. Premiums are contracting, dilution is increasing, and the viability of the model is being questioned. Some companies that bet on this strategy now find themselves in a financial impasse, unable to maintain their acquisition pace as the market turns against them.
Pressure Mounts on the ETH Treasury Model
Bitwise is sounding the alarm: the Ethereum treasury model is under structural pressure. Unlike Bitcoin, whose fixed issuance and “store of value” narrative have won over institutions, Ether is struggling to convince in the long term as a corporate treasury asset.
Several factors explain this withdrawal. First, ETH’s inherent volatility remains high, exposing corporate balance sheets to significant fluctuations. Next, the continued issuance of Ether, even reduced by the burn mechanism, creates permanent selling pressure that purchases must offset. Finally, the macroeconomic context has hardened, making fundraising more complicated and investors more selective.
The supply-demand imbalance that had propelled prices is rapidly fading. In three months, purchases have melted by over 80% while issuance remains constant. This inverse dynamic threatens the model’s stability and could trigger significant valuation adjustments in the coming months. Companies that adopted this strategy will either need to find new capital or revise their approach in the face of a market that no longer supports their economic model.
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