Bitcoin's dominance in the corporate treasury space seems to be waning, even with the asset trading close to its all-time highs.
New data suggests that companies adding Bitcoin to their balance sheets are slowing down, while Ethereum and other altcoins are gaining strength.
The number of companies buying Bitcoin for their treasuries has fallen to just 2.8 per day, despite the recent record price performance of the pioneering crypto.
Charles Edwards, founder of Capriole Investments, attributes this to two possible reasons. First, it may reflect saturation among traditional finance (TradFi) capital-raising companies. Alternatively, the slowdown may just be a temporary drop in demand.
Corporate crypto treasuries shift from Bitcoin to Ethereum and beyond:
Meanwhile, Ethereum and other altcoins are attracting growing interest from companies looking to diversify their corporate holdings beyond Bitcoin.
Geoff Kendrick, head of Digital Asset Research at Standard Chartered, recently argued that Ethereum treasury companies could actually offer better value than spot ETH ETFs in the US.
"I see no reason for the NAV multiple to fall below 1.0. These companies offer regulatory arbitrage for investors. Given that NAV multiples are currently slightly above one, I see ETH treasury companies as a better asset to buy than spot ETH ETFs in the US," Kendrick told BeInCrypto.
The trend reflects a broader change. While Bitcoin has long dominated corporate treasury strategies, Ethereum and altcoins like BNB, Dogecoin, and PENGU are being increasingly accumulated.
However, while corporate adoption of digital assets has increased in recent months, not everyone is convinced that this is sustainable.
Some companies are turning to crypto in an attempt to rescue struggling businesses. Others aim to capitalize on the recent favorable market winds.
Companies expand treasury with Ethereum and altcoins
Andrew Bailey, senior researcher at the Bitcoin Policy Institute, warned that crypto cannot solve deeper corporate problems.
"Most of the new 'treasury companies' are gimmicks and will likely fail. A poorly managed business does not become good just because it is acquiring solid money," Bailey said in an interview in June.
Despite concerns, institutional capital is flowing into the sector. Pantera Capital invested $300 million in its Digital Asset Treasury (DAT) portfolio, which includes companies like 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 cryptos, including Bitcoin, Ethereum, Solana, BNB, TON, Hyperliquid, Sui, and Ethena. They operate in the US, UK, and Israel.
The increase in alternative treasury holdings raises questions about whether Bitcoin is losing its status as the corporate favorite. Companies are increasingly willing to experiment with Ethereum and other altcoins.
Are they betting on greater growth potential or protecting themselves 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 the growing appeal of Ethereum, signals that the balance of power in corporate crypto adoption may be starting to shift.