Bitcoin News Today: Bitcoin Falls 8% in October, Treasuries Rise as Firms Double Down on Digital Reserves

Marathon Digital Holdings (MARA) has made headlines with the transfer of 2,348 Bitcoins—worth $236 million—over the past 12 hours, underscoring a significant strategic move in the cryptocurrency sector. This activity aligns with broader trends in Bitcoin treasury management, where institutional players are increasingly treating the asset as a core reserve. The move follows a volatile October for Bitcoin, which closed at $110,150, an 8% decline for the month, prompting a $18.8 billion drop in the market capitalization of publicly listed Bitcoin treasuries, according to Yahoo Finance. Despite this, firms like MARA, MicroStrategy, and Hut 8 have continued to accumulate Bitcoin, with total holdings rising to 804,680 BTC by month-end, the report added.

The aggressive accumulation by treasury firms reflects a countercyclical strategy amid regulatory and macroeconomic uncertainties. Michael Saylor-led Strategy, which holds 640,808 BTC, recently announced a 10.5% monthly dividend on its STRC stock, signaling confidence in its Bitcoin-backed financial structure. The firm's Q3 performance—$3.9 billion in profits compared to $432.6 million losses in the same period in 2024—has emboldened its approach to Bitcoin purchases. Meanwhile, MARA's Q3 earnings, reported by Cointelegraph, highlighted a 92% year-over-year revenue surge to $252 million, alongside a net income of $123 million, as Bitcoin holdings nearly doubled to 52,850 BTC. Hut 8 similarly reported a 97% increase in Bitcoin reserves to 13,696 BTC, according to Markets.com.

The institutional push to amass Bitcoin has been bolstered by a shift in corporate strategy toward energy and infrastructure diversification. MARA's CEO, Frederick Thiel, emphasized the firm's transformation into a "vertically integrated digital infrastructure company," integrating Bitcoin mining with AI workloads and energy projects, as noted by Seeking Alpha. The company's acquisition of Exaion, a French state-owned utility subsidiary, and its 400-megawatt power generation initiative in Texas highlight this pivot, the piece added. Hut 8, meanwhile, is expanding its North American capacity to 2.5 gigawatts, leveraging Bitcoin's role as a hedge against energy price volatility, Markets.com also reported.

Regulatory developments further signal growing institutional acceptance of crypto. The U.S. Federal Housing Finance Agency (FHFA) is reviewing whether crypto holdings should be considered in mortgage applications, as reported by CoinDesk. Director Bill Pulte, a Bitcoin holder, stated the review could reshape how Fannie Mae and Freddie Mac evaluate borrower wealth. This comes as MARA and other firms face scrutiny over the practicality of treating Bitcoin as a reserve asset. Despite a 13% drop in Bitcoin treasury firm valuations in October, institutional demand remains robust, with funds continuing to flow into Bitcoin spot ETFs and perpetual preferred stocks like STRC.

Market sentiment has also been influenced by macroeconomic factors. The S&P 500 and Nasdaq extended their winning streaks in October, with crypto-linked stocks like MicroStrategy (up 5.87%) and MARA (up 2.87%) outperforming peers, according to Lookonchain. Analysts attribute this resilience to Bitcoin's growing adoption as a strategic reserve, with countries like Bhutan and Dubai considering legal tender status, per Moomoo. However, risks persist: Bitcoin's recent 6% decline to $99,000 and potential U.S. interest rate hikes could test the mettle of even the most bullish treasury strategies.

As MARA and peers navigate these dynamics, the focus remains on scaling operations and securing low-cost energy to maintain profitability. With MARA targeting 50% of revenue from international operations by 2028, and the U.S. dominating global Bitcoin mining with 37% of the hashrate, the sector's evolution will hinge on balancing technological innovation with regulatory clarity. For now, the $236 million Bitcoin transfer by MARA underscores a sector in flux—one where volatility and opportunity coexist.