Corporate Demand for Ethereum Plummets by 81%

Corporate demand for Ethereum has dropped significantly, with purchases down 81%.

The surge of companies holding digital assets on their balance sheets (DAT) has come to an end, according to Bitwise analyst Max Shannon in a comment to DL News.

The volume of Ethereum purchases by such firms has decreased by 81%, from 1.97 million ETH in August to 370,000 ETH in November.

ETH DAT bear continues. pic.twitter.com/5YhOwqTICd

— Max Shannon (@cornMaxy) December 2, 2025

The expert described the trend of asset accumulation as the “alt-season version” of the current cycle. The situation follows a classic scenario: the emergence of new alternatives dilutes limited capital, which can no longer sustain demand at previous levels.

Shannon explained that if crypto treasury purchases continue to decline with stable issuance (80,000 coins), structural demand for Ethereum will evaporate.

“As long as the net inflow from DAT companies exceeds the new supply of ETH, this strategy continues to create fundamental demand for the asset. But the pressure is already palpable: it manifests in the decline of mNAV multipliers and reduced purchase volumes. The unwinding of the strategy is in full swing,” he noted.

Winner Takes Almost All

The peak of excitement around crypto treasuries occurred in the summer. The pioneer was BitMine, led by Tom Lee, which remains one of the few companies continuing to increase its positions.

Currently, the volume of assets under its management exceeds the combined figures of the other 69 companies with a similar strategy.

Shannon predicted an increase in this concentration:

“The largest DAT companies, with access to more substantial capital markets, are better positioned to attract funds, purchase ETH, and draw in external capital, creating a self-sustaining cycle,” he noted.

Smaller players have found themselves in a “death spiral.” Unlike BitMine, they lack access to capital markets to raise funds for cryptocurrency purchases.

Without increasing reserves, such firms lose investment appeal. The decline in mNAV and dilution of shares due to additional stock issuance deprive them of the ability to accumulate assets.

“Smaller DAT companies are likely to struggle to survive and will act impulsively during ETH rallies,” said Shannon.

In November, Bitwise’s Chief Investment Officer Matt Hougan highlighted the inefficiency of crypto treasuries.