Treasury companies may be selling reserves during latest market downturn

Treasury companies are one of the big concerns for any remaining trust in the crypto market. Data on identified wallets show Nakamoto and Strategy moved some of their holdings. 

Tracking treasury companies shows outflows from known reserves of several long-term holders. Among BTC treasury companies, not all wallets are known, but researchers have identified some of the reserves. 

For the past 24 hours, on-chain researcher @SaniExp tracked the flows of some of the biggest holders. In total, 18,221 BTC were moved, extending the trend of capitulation from the past few days. 

Selling pressure comes from all types of wallets, with over 9K BTC flowing into Binance. However, the sales from treasuries, though small, can signal a bigger breakdown in the crypto market structure. 

BlackRock (IBIT) sold the biggest amount of BTC, 5,081 coins. However, BlackRock’s sale is expected. Outflow from treasury companies is what creates worries. 

Nakamoto moved 1,933 BTC

Nakamoto, Inc. (NAKA) reported a treasury of 5,398 BTC, with no data on the mode of acquisition or average price. Overall, Nakamoto has been a passive holder, lining up as the 21st largest treasury among public companies. 

As Cryptopolitan reported, Nakamoto, formerly Kindly, MD, was one of the buyers during the peak months for DAT companies. As a result, Nakamoto’s buying structure was heavily dependent on debt, as all the company’s loans were structured near the BTC all-time price peak. 

As BTC dipped to the $63,000 range, Nakamoto felt pressure and its reported balance declined by 1,933 BTC. Nakamoto has secured a $210M BTC-backed loan from Kraken, meaning its treasury can be transferred to cover the obligation. 

Nakamoto itself has not reported outflows from its treasury. Other non-playbook buyers also shed some BTC. WisdomTree moved 122 BTC out of its wallets, while 21Shares moved 37 BTC. 

Ark Invest, one of the previous strong BTC bulls, moved out 432 BTC from its balance. The company was also a strong supporter of BMNR and the idea of treasuries. 

Is Strategy pressured to sell? 

Based on identified wallets, Strategy may have moved some of its BTC from Fidelity Custody, raising questions on potential selling. 

In the past, Strategy has faced FUD for selling BTC, although its outflows have been limited. The company is already carrying a large-scale BTC loss, raising doubts about its potential long-term solvency.

In its latest earnings call, Strategy announced it will be solvent with no need to sell even if BTC dips lower, with a critical level as low as $8,000. However, BTC is now trading solidly below Strategy’s average purchase price. Strategy has also made some of its big acquisitions during periods of peak optimism, buying BTC near the higher price range. 

There is still no consensus on the final local bottom for BTC. Currently, the coin trades with fearful sentiment and low open interest, with no signs of directional trading or a new buildup of long positions. The shift of BTC to a range-bound trading with a lower price may precede more capitulations and crashes.

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