Bitcoin News Today: Regulators and Market Forces Disrupt Crypto Treasury Playbook

Crypto treasuries are entering a period of heightened uncertainty as institutional demand for Bitcoin (BTC) wanes and regulatory scrutiny intensifies, according to recent reports. The peak of institutional accumulation—marked by record holdings of 840,000 BTC in August—has been followed by a sharp decline in purchase volumes and transaction sizes, suggesting a cooling in the appetite for crypto-backed treasuries. According to a September 5 report by CryptoQuant, corporate entities have significantly reduced their Bitcoin purchases, with Strategy, the largest corporate BTC holder, acquiring only 3,700 BTC in August, a dramatic drop from the 134,000 BTC it acquired in November 2024. Other treasury companies also posted declines, purchasing 14,800 BTC in August, well below the 2025 average of 24,000 BTC and the June peak of 66,000 BTC [1].

The decline in transaction sizes further underscores the slowdown. The average Bitcoin per transaction for Strategy and other companies dropped by 86% compared to early 2025 highs, with analysts attributing the smaller transactions to liquidity constraints and institutional hesitancy. Monthly growth for Strategy slowed from 44% in December 2024 to just 5% in August, while other companies saw their growth rates fall from 163% in March to 8% in August [1]. Despite an elevated transaction count—53 in June and 46 in August—these figures mask the underlying trend of declining institutional demand.

Regulatory pressures are also reshaping the landscape for crypto treasury companies. Nasdaq has introduced new rules requiring shareholder approval for equity issuances used to purchase crypto, a move aimed at protecting existing shareholders from dilution. This development could slow the rapid capital deployment strategies that characterized much of 2025. Additionally, Sequans Communications, which controls 3,205 BTC valued at $355 million, executed a reverse stock split to meet NYSE listing requirements, signaling growing concerns about share price performance and potential asset sales [1].

The regulatory and financial challenges facing these firms are not isolated. A recent report highlights a pattern similar to the 2020–2021 cycle, where Strategy's holdings growth peaked at 78% before declining to 6% a year later. This historical precedent suggests that the current phase of institutional Bitcoin accumulation may be entering a similar deceleration period [1]. Meanwhile, the market has reacted to the news, with Bitcoin and treasury stocks declining. For instance, Strategy dropped by 0.8%, while Sharplink Gaming and Upexi and DeFi Development fell by 8% and 7.6%, respectively [2].

The debate over the viability of Bitcoin treasury strategies continues to evolve. Matt Cole of Strive Asset Management, a vocal advocate for corporate Bitcoin holdings, argues that the hardest milestone for such companies is reaching $1 billion in capital, which is necessary to support IPOs and leverage growth. Cole emphasizes that Bitcoin's fixed supply makes it a unique asset for levered treasury strategies, while Ethereum and other tokens, with their more fluid monetary policies, are less suited for such approaches [3]. However, the financial viability of these strategies remains under scrutiny, with analysts questioning whether treasury companies can outperform direct Bitcoin investments or ETFs. The consensus is that transparency and scale remain key factors in determining the long-term success of these models [3].

As the market navigates these challenges, the future of crypto treasuries remains uncertain. Institutional demand has waned, regulatory hurdles have increased, and market conditions suggest a period of adjustment. Whether this phase represents a temporary slowdown or a more permanent shift in strategy will depend on how companies adapt to the evolving landscape. For now, the crypto treasury sector is in a period of recalibration, with investors closely watching for signs of renewed momentum or further consolidation [1].

Source:

[1] Bitcoin Treasury Companies Purchase Volumes Slump Despite Record Transaction Count (https://cryptoslate.com/bitcoin-treasury-companies-purchase-volumes-slump-despite-record-transaction-count/)

[2] NASDAQ's Plan to Control Crypto Treasury Companies (https://finance.yahoo.com/news/nasdaq-plan-control-crypto-treasury-085507684.html)

[3] 'Just Buy a Bitcoin ETF': BTC Treasury Model Faces Reality (https://www.coindesk.com/markets/2025/09/05/asia-morning-briefing-outperform-or-die-btc-treasury-firms-versus-etfs)