Institutional BTC holdings fall by 130K over three months

Institutional investors, including trusts, ETFs and funds, cut their Bitcoin holdings to 1.2 million BTC from 1.33 million BTC over the past three months, Cointelegraph reported. The outlet said the decline came as another major source of institutional investment demand, Bitcoin treasury companies, faced pressure, noting that Strategy, the largest Bitcoin holder among listed companies, sold 1,638 BTC last week. Cointelegraph added that these companies have grown by taking advantage of stock prices trading above the value of their holdings, issuing shares and bonds, and using the proceeds to buy more Bitcoin. But when share prices fall below net asset value, or NAV, the efficiency of that funding model declines, and new fundraising can dilute the equity value of existing shareholders. While on-chain data points to weakening institutional demand, the outlet said it is difficult to conclude that sales by Bitcoin treasury strategy companies alone are the cause.