Bitcoin’s Price Crash Hasn’t Stopped One Company From Adding to Its $47 Billion Crypto Stash
Summary
The article explores the critical question of how low certain metrics can drop before it's deemed too late for recovery. The authors delve into the implications of these declines and the potential consequences for various sectors.
Key Insights
What is a corporate Bitcoin treasury or Digital Asset Treasury (DAT) company?
Corporate Bitcoin treasuries, or Digital Asset Treasury (DAT) companies, refer to firms that hold significant amounts of Bitcoin as a core part of their balance sheet strategy, treating it as a reserve asset similar to gold. These companies now collectively hold over 1.1 million BTC, or 5.7% of Bitcoin's total supply, valued at around $90 billion.
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Why are institutions like Bullish continuing to hold or add to Bitcoin holdings during the price crash?
Institutions such as Bullish hold substantial Bitcoin on their balance sheets (e.g., 24-25,000 BTC) and remain insulated from short-term volatility, focusing on long-term potential like tokenization of real-world assets and steady inflows from traditional finance players like banks and asset managers, even amid market downturns.
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[1]