tldr; Ethereum treasury purchases have dropped significantly, falling from 1.97 million ETH in August to 370,000 ETH in November, an 80% decline. Bitwise attributes this to the unwinding of the treasury model as smaller players struggle to compete. Bitmine, a major player, holds more Ether than all other treasuries combined, dominating the market. The decline in treasury purchases, coupled with constant new ETH supply, threatens the structural demand for Ethereum, with smaller treasuries facing potential extinction due to limited capital access and shrinking premiums.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
F-machine on
Doesnt hurt us anymore these collapses we have thicker skin than a lizard
MariachiArchery on
>Smaller treasuries face a death spiral. Without the capital markets access that Bitmine enjoys, they can’t raise funds to buy more ETH.
>Without buying more ETH, they can’t attract external capital. Their premiums compress, making equity raises more dilutive, further limiting their ability to accumulate.
Raise funds, buy ETH, more ETH means you can raise more funds, and buy more ETH… repeat.
Yeah… this doesn’t seem sustainable does it.
I think it is more simple than that. When we give these large capital markets exposure to ETH and crypto as a whole, they will always be looking to hedge and risk balance. What I think has been happening in the crypto market as a whole is simple; de-risking. That is what we are seeing. The capital markets as whole are hedging and de-risking. Why? Because we’ve got 3 more years of Trump.
Doesn’t matter what your politics are. Chaos in the White House is not good for the markets. It introduces uncertainty, and uncertainty equals risk.
SeriousGains on
People say Strategy needs to die but the truth is ETH treasuries are the ones that need to die. If the entire crypto ecosystem focused solely on BTC we’d be over 200k right now.
SilverPrivateer on
Yep I don’t really trust those Ethereum companies. You can create new etheriums by changing code in a computer, right? I became a bitcoiner via MSTR today and although I’ve been temped to try altcoins I kinda feel like everything is a scam compared to bitcoin.
Still considering other ones though if anyone wants to “shill their bags”
5 Comments
tldr; Ethereum treasury purchases have dropped significantly, falling from 1.97 million ETH in August to 370,000 ETH in November, an 80% decline. Bitwise attributes this to the unwinding of the treasury model as smaller players struggle to compete. Bitmine, a major player, holds more Ether than all other treasuries combined, dominating the market. The decline in treasury purchases, coupled with constant new ETH supply, threatens the structural demand for Ethereum, with smaller treasuries facing potential extinction due to limited capital access and shrinking premiums.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
Doesnt hurt us anymore these collapses we have thicker skin than a lizard
>Smaller treasuries face a death spiral. Without the capital markets access that Bitmine enjoys, they can’t raise funds to buy more ETH.
>Without buying more ETH, they can’t attract external capital. Their premiums compress, making equity raises more dilutive, further limiting their ability to accumulate.
Raise funds, buy ETH, more ETH means you can raise more funds, and buy more ETH… repeat.
Yeah… this doesn’t seem sustainable does it.
I think it is more simple than that. When we give these large capital markets exposure to ETH and crypto as a whole, they will always be looking to hedge and risk balance. What I think has been happening in the crypto market as a whole is simple; de-risking. That is what we are seeing. The capital markets as whole are hedging and de-risking. Why? Because we’ve got 3 more years of Trump.
Doesn’t matter what your politics are. Chaos in the White House is not good for the markets. It introduces uncertainty, and uncertainty equals risk.
People say Strategy needs to die but the truth is ETH treasuries are the ones that need to die. If the entire crypto ecosystem focused solely on BTC we’d be over 200k right now.
Yep I don’t really trust those Ethereum companies. You can create new etheriums by changing code in a computer, right? I became a bitcoiner via MSTR today and although I’ve been temped to try altcoins I kinda feel like everything is a scam compared to bitcoin.
Still considering other ones though if anyone wants to “shill their bags”