Institutional BTC holdings drop to 1.2 million

Institutional investors reduced their Bitcoin holdings from 1.33 million BTC to 1.2 million BTC over the past three months. This decline coincides with pressure on Bitcoin treasury companies, which are significant sources of institutional investment demand. Recently, Strategy, the largest Bitcoin holder among listed companies, sold 1,638 BTC. These companies have typically grown by leveraging stock prices above the value of their holdings, issuing shares and bonds to acquire more Bitcoin. However, when share prices fall below net asset value, the effectiveness of this funding model diminishes, potentially diluting the equity value for existing shareholders. While on-chain data indicates a weakening in institutional demand, it is challenging to attribute the decline solely to sales by Bitcoin treasury strategy companies.

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