Saylor’s Approach has sold bitcoin for the first time since 2022, marking the end of a significant accumulation phase. With this change, the number of active digital asset treasuries has decreased notably. Here are the key points:

— Saylor’s Approach sold bitcoin for the first time since December 2022, concluding a period that characterized the crypto treasury strategy.

— Many digital asset treasury companies have paused their purchases or begun to sell off assets as the market declined in October.

— Bitmine and Strive remain among the few firms actively acquiring digital assets in the last month.

Saylor’s Approach (MSTR), the firm known for its bitcoin accumulation strategy that inspired a wave of digital asset treasury firms, divested approximately $2.5 million in BTC for the first time since December 2022. This action comes amid significant challenges the strategy has faced since its rise in popularity last year.

Numerous companies raised funds through equity and debt offerings to buy bitcoin, ether (ETH), and other cryptocurrencies in an attempt to emulate Michael Saylor’s methods. This approach was effective for a period last year when cryptocurrency values soared and treasury stocks traded at a premium to their intrinsic values.

However, this dynamic shifted as the cryptocurrency markets peaked in October. As token prices declined and treasury stocks fell below their net asset value, many firms found it difficult to raise capital on favorable terms, with some stocks plummeting over 90% from their peak. Some firms ceased purchasing, while others transitioned to a selling mode.

Despite these challenges, Saylor’s Approach persisted in its buying strategy, with Executive Chairman Michael Saylor continuing to promote the philosophy of buying and holding.

However, this resolve was not long-lasting. Saylor’s Approach hinted at a possible sale in May and subsequently announced its first sale on Monday, June 1. With Saylor’s Approach ending its accumulation streak and several peers stepping back, some may perceive this as a significant blow to treasury firms, as the number of active buyers has now diminished significantly.

Still making acquisitions

Nevertheless, a few companies are still in the buying game. Notably, Bitmine (BMNR), led by Tom Lee, continues to acquire Ethereum. Last week, the company purchased approximately $53 million worth of ETH and accumulated over 338,000 tokens throughout May, totaling around $665 million at current market values. Bitmine now holds over 5.4 million ETH, positioning it as the largest corporate holder of the token.

Tom Lee mentioned that the firm intends to moderate its accumulation pace as it nears its objective of owning 5% of the ETH supply.

Another Ethereum-focused firm, Bit Digital (BTBT), returned to the market in May with a $20 million purchase of ETH, marking its first acquisition since October.

Several bitcoin-focused firms are still active in buying. Strive (ASST) reported acquiring approximately 1,944 BTC in May through multiple transactions, at a cost of around $150 million. Japan’s Metaplanet also made headlines with a purchase in early April, acquiring 5,075 BTC.

Hyperliquid Strategies (PURR), a treasury firm focused on acquiring HYPE, the native token of the popular Hyperliquid blockchain-based exchange, disclosed spending $216 million to acquire 7.3 million tokens between early December and the end of April. Given HYPE’s surge to all-time highs, the returns on that investment have more than doubled since then.

Despite last week’s sale, Saylor’s Approach remained one of the largest contributors to bitcoin demand throughout May, purchasing over 25,000 BTC for more than $2 billion.

The sellers

Conversely, several firms have been decreasing their crypto holdings recently. Nakamoto Holdings (NAKA), led by David Bailey, sold 284 BTC in March, which accounted for about 5% of its holdings. Empery Digital offloaded 370 BTC in April to pay off a term loan. Genius Group (GNS) reported in April that it liquidated its remaining 84 BTC to address $8.5 million in debt.

Additionally, some companies have completely shifted away from the treasury model. Forum Markets, previously known as ETHZilla, redirected its focus to tokenization earlier this year after liquidating roughly $114 million worth of ether. VivoPower, which had aimed to establish an XRP-focused treasury, pivoted to data center and AI infrastructure in February, divesting from its Ripple-related investments and XRP holdings.