Corporate Bitcoin & Ethereum Buying Frenzy Hits Overdrive This Week
Wall Street's FOMO just went crypto-shaped.
Major corporations are scrambling to accumulate Bitcoin and Ethereum at a pace that'd make even 2021 bulls blush. Forget 'dip buying'—this is full-blown treasury transformation playing out in real time.
The rush reveals a harsh truth: traditional finance's 5% yield plays look increasingly like clown cars next to crypto's asymmetric upside. When even risk committees are greenlighting digital asset allocations, you know the paradigm has shifted.
One CFO anonymously quipped: 'We either get ahead of this or explain to shareholders why we parked cash in bonds while competitors moon.' Ouch.
Bitcoin’s All-Time High Triggered Another Corporate Race
The bitcoin treasury strategy, where corporations invest huge sums into massive BTC stockpiles, has been sweeping the globe. Last week, a surge of new companies began or substantially upscaled their Bitcoin holdings, and more are joining.
K Wave Media, a South Korean firm, announced plans to make major acquisitions, aiming to hold 88 bitcoins:
“We believe that this financing structure positions us to execute one of the most ambitious corporate Bitcoin accumulation strategies in the world. Our objective is clear: to scale our holdings toward 10,000 bitcoins as soon as possible while maintaining strong investor alignment and full transparency,” claimed CEO Ted Kim.
Considering Bitcoin’s price reached an all-time high yesterday, K Wave is trying to build a huge treasury. The firm claimed that it’s partnering with Anson Funds, an investment company that will provide it with $500 million in financing.
At least 80% of these proceeds will go to BTC acquisitions, but K Wave may invest as much as $1 billion.
Another firm doubling down on the Bitcoin treasury strategy is DDC Enterprise, which has already been buying BTC. Today, it announced a partnership with Animoca Brands to invest $100 million into DDC’s stockpile.
Animoca, which has been pursuing diverse revenue strategies, will help manage DDC’s investments, gaining market experience and some of the yield.
Furthermore, although Bitcoin is definitely the preferred asset, several companies are building treasuries of different altcoins. Solana, for example, has its own MicroStrategy-type whale, and data from Lookonchain revealed seven large ETH transactions last night. Several came from corporate buyers, and the total quantity of ethereum reached $358 million:
Ethereum broke back above $2,800 today!
In the past 24 hours, 7 whales/institutions have bought 127,971 $ETH($358M).
Newly created wallet 0x35fb withdrew 54,125 $ETH($151M) from #Kraken in the past 16 hours.https://t.co/5e6AQjMOwt
Abraxas Capital withdrew 40,986 $ETH($114M)… pic.twitter.com/0pmcvZxK7S
Of course, a few of these transactions were anonymous whales, which may not have anything to do with corporate holders. One was even part of a chain of money laundering from yesterday’s GMX hack. Still, this trend shows that corporate treasury acquisitions are not necessarily related to Bitcoin.
However, the Bitcoin treasury plan is causing fears of an impending bubble.
How sustainable is this rampant BTC investment? Some corporate crypto holders are outperforming the assets they custody, which may indicate extreme levels of speculation.
