The rapid rise of Ethereum treasury accumulation is losing steam, with recent data showing a sharp pullback in corporate Ether purchases. Digital-asset treasury (DAT) companies acquired just 370,000 ETH in November, an 81% drop from August’s high of 1.97 million ETH, according to figures from Bitwise.
The retreat marks the swift unwinding of what had been touted as this market cycle’s “altseason,” driven by expectations that institutional balance-sheet strategies used for Bitcoin would spill over to Ethereum. Instead, analysts say the trend now reflects weakening demand and growing structural challenges.
“Treasuries were this cycle’s version of an altseason, and the same pattern is now playing out,” Max Shannon, senior research associate at Bitwise, told DL News. “As more alternatives emerge, the same pool of capital cannot sustain demand.”
Leading Accumulators and Emerging Strain
The surge in treasury accumulation began in July, when several firms followed Bitcoin-style treasury moves and began accumulating large ETH positions. Leading this group is Bitmine, the digital-asset company headed by Wall Street strategist Tom Lee.
Bitmine remains the dominant buyer, holding more than 3.73 million ETH, a stockpile larger than all other Ethereum treasuries combined. By comparison, the second-largest holder, SharpLink Gaming, controls less than one-fourth of that amount.
However, the model is showing signs of strain. Bitwise researchers note that premiums are shrinking, buying power is fading, and smaller players are finding it increasingly difficult to raise capital. Although treasury purchases still exceed Ethereum’s roughly 80,000 ETH monthly issuance, the gap between supply and institutional demand is closing rapidly.
Future Outlook and Market Concentration
Shannon cautions that the market could move toward a winner-takes-most outcome. “The largest DATs are best placed to raise funds, buy more ETH, and draw in external capital,” he said. Smaller treasuries, however, may struggle to survive as weak mNAVs, market-cap-to-net-asset-value multiples, limit their ability to attract investors.
With treasury demand contracting and concentration increasing, analysts warn that the Ethereum balance-sheet boom could be nearing its end.