The optimism for replicating the success of the Bitcoin treasury strategy in the Ethereum ecosystem has abruptly changed, and the euphoria is gone. When companies began acquiring Ether (ETH) for their balance sheets, investors hoped the popularity of this trade would spread to the second-largest cryptocurrency by market capitalization. However, the early euphoria has given way to a brutal correction.
The volume of Ether purchased by digital asset companies for their corporate treasuries plummeted by an impressive 81%, falling from its August peak of 1.97 million ETH to 370,000 in November, according to Bitwise data. This collapse of Ether purchases by companies signals the unwinding of what many considered the “altseason” version of this cycle.
Max Shannon, senior research associate at Bitwise, explained that this is a familiar pattern. “Treasuries were this cycle’s version of an altseason, and the same pattern is now playing out similar to previous cycles. As more alternatives emerge, the same pool of capital cannot sustain demand.”
This setback is putting the structural support for the price of Ether at risk. Although monthly purchases (370,000 ETH) still exceed the new constant supply of Ether (approximately 80,000 ETH per month), the gap is quickly narrowing. This pressure is already visible in the fall of mNAV (the market-cap-to-net-asset-value multiple), indicating lower confidence.
Centralization Accelerates the Extinction of Smaller Players
The Bitcoin treasury trade, like the Ethereum segment, is monopolized by one main player: Bitmine. This miner, now converted into an Ethereum treasury, holds over 3.73 million Ether, valued at nearly $13 billion, a figure that is four times greater than that of its nearest competitor, SharpLink Gaming. In fact, this miner’s stockpile is larger than all the other 68 Ethereum treasury companies combined.
Bitmine’s supremacy is forcing a “winner-takes-most” scenario. Shannon anticipates that this concentration will accelerate, as the largest treasuries, backed by deeper capital markets, are better positioned to raise funds and accumulate more ETH.
The outlook is not clear for smaller treasuries. Without the same access to capital, they cannot acquire more ETH, which limits their ability to attract external capital. Their premiums compress, making capital raising more dilutive.
Ultimately, the collapse of Ether purchases by companies is pushing these minor players toward a death spiral, forcing them to adopt more “reflexive” behavior during ETH rallies.