Bitcoin’s dominance in the corporate treasury space appears to be waning, even as the asset trades near all-time highs.
New data suggests that companies adding Bitcoin to their balance sheets are slowing down, while Ethereum and other altcoins are gaining traction.
Corporate Crypto Treasuries Shift from Bitcoin to Ethereum and Beyond
The number of companies buying Bitcoin for their treasuries has dropped to just 2.8 per day, despite the pioneer crypto’s recent record-setting price performance.
Capriole Investments founder Charles Edwards ascribes this to either of two things happening. First, it may reflect saturation among traditional finance (TradFi) capital-raising firms. Alternatively, the slowdown may simply be a temporary dip in demand.
Meanwhile, Ethereum and other altcoins are attracting growing interest from firms seeking to diversify corporate holdings beyond Bitcoin.
Standard Chartered’s Head of Digital Assets Research, Geoff Kendrick, recently argued that Ethereum treasury firms may actually offer better value than US spot ETH ETFs (exchange-traded funds).
“I see no reason for the NAV multiple to go below 1.0. These firms offer regulatory arbitrage for investors. Given NAV multiples are currently just above one, I see the ETH treasury companies as a better asset to buy than the US spot ETH ETFs,” Kendrick told BeInCrypto.
The trend reflects a wider shift. While Bitcoin has long dominated corporate treasury strategies, Ethereum and altcoins like BNB, Dogecoin, and PENGU are increasingly being stockpiled.
However, while corporate adoption of digital assets has surged in recent months, not everyone is convinced this is sustainable.
Some firms are turning to crypto in an attempt to rescue struggling businesses. Others aim to ride recent market tailwinds.
Andrew Bailey, senior fellow at the Bitcoin Policy Institute, warned that crypto cannot fix deeper corporate problems.
“Most new ‘treasury companies’ are gimmicks, and will likely fail. A badly run business doesn’t become good just because it is acquiring sound money,” Bailey said in a June interview.
Despite concerns, institutional capital is flowing into the sector. Pantera Capital has invested $300 million into its Digital Asset Treasury (DAT) portfolio, which includes firms such as BitMine Immersion, Twenty One Capital, DeFi Development Corp, SharpLink Gaming, Satsuma Technology, Verb Technology, CEA Industries, and Mill City Ventures III.
These companies hold many cryptocurrencies, including Bitcoin, Ethereum, Solana, BNB, TON, Hyperliquid, Sui, and Ethena. They have operations spanning across the US, UK, and Israel.
The surge in alternative treasury holdings raises questions about whether Bitcoin is losing its hold as a corporate favorite. Companies are increasingly willing to experiment with Ethereum and other altcoins.
Are they betting on higher growth potential or hedging against Bitcoin’s volatility? Is this a secular shift in corporate treasury strategy or a short-term diversification?
The slowdown in Bitcoin treasury buyers, combined with Ethereum’s rising appeal, signals that the balance of power in corporate crypto adoption may be starting to shift.
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