Coinbase Reports Corporate Bitcoin Buyers ‘Ghosted’ After October Crash: Institutional Demand Hangs by a Thread
Introduction: The Great Institutional Pullback
In a sobering assessment of current market dynamics, Coinbase’s institutional research division has reported a stark decline in corporate demand for Bitcoin, with Digital Asset Treasury (DAT) companies having largely “ghosted” the market following the sharp correction on October 10. According to David Duong, Head of Institutional Research at Coinbase, buying activity from these key institutional players has plummeted to near year-to-date lows, creating a fragile support level for crypto prices. The report highlights a concerning trend: even during brief market recoveries, the corporate bid that once provided a solid foundation for Bitcoin has failed to materialize. The sole bastion of consistent institutional demand appears to be concentrated in Ethereum, driven almost exclusively by a single entity—Bitmine (BMNR). This concentration risk, coupled with the widespread retreat of Bitcoin DATs, signals a cautious and defensive shift in institutional sentiment that could have significant implications for the broader digital asset market.
The DAT Exodus: Analyzing the Post-Crash Vacuum
What Are Digital Asset Treasuries (DATs)?
Before delving into the current downturn, it’s essential to understand the role of DATs. Digital Asset Treasury companies are typically publicly traded firms or large private entities that allocate a portion of their balance sheets to holding cryptocurrencies, primarily Bitcoin, as a treasury reserve asset. This trend, famously pioneered by MicroStrategy, gained immense traction throughout 2020-2024, creating a substantial and seemingly steady source of demand for Bitcoin. These corporate buyers were often seen as long-term holders, providing stability and validating Bitcoin’s “digital gold” narrative.
The Ghosting Phenomenon
According to Coinbase’s David Duong, this reliable source of demand has effectively vanished since the October 10 drawdown. The term “ghosted” aptly describes a scenario where these previously active buyers have ceased communication and participation without explanation. The data shows that BTC buying by DATs has fallen to its lowest levels this year. This isn't merely a pause; it's a near-total disengagement. Unlike retail traders who might react to short-term price swings, DATs are typically considered strategic accumulators. Their collective retreat suggests a deeper crisis of confidence or a strategic reassessment at the corporate level following the market downturn. The lack of re-engagement during recovery periods is particularly telling, indicating that the October event may have triggered a more fundamental shift in institutional risk appetite.
Ethereum’s Fragile Lifeline: The Bitmine (BMNR) Factor
While Bitcoin DATs have retreated, Coinbase’s report identifies a sliver of demand in the Ethereum market. However, this demand is precarious. Duong notes that the only consistent corporate buying activity since the correction has come from Ethereum-focused DATs, and this activity is "narrowly driven by a single player."
A Single Point of Failure
That single player is identified as Bitmine (BMNR), with only minor contributions from other, smaller funds. This creates a significant concentration risk for Ethereum’s institutional bid. The entire apparent corporate demand for ETH currently hinges on the continued purchasing power and willingness of one entity. Coinbase explicitly warned that if BMNR were to "slow or halt purchases, the apparent corporate bid for ETH could quickly fade." This situation underscores the thin ice upon which current institutional crypto demand is standing. It contrasts sharply with the previously broad-based, if not decentralized, corporate accumulation seen in Bitcoin during its heyday.
Comparing Asset Narratives
This divergence between Bitcoin and Ethereum DAT behavior is noteworthy. Bitcoin’s primary narrative for corporations has been as an uncorrelated, inflation-hedging store of value—a digital treasury asset. Ethereum’s value proposition is more complex, tied to its utility as a decentralized world computer and its yield-generating capabilities through staking. The fact that ETH is attracting what little corporate demand exists could suggest that institutions are currently more convinced by its cash-flow potential and ecosystem growth than by Bitcoin’s macro hedge narrative in the current economic climate.
MicroStrategy’s Slowdown: A Bellwether Cools Off
The cautious stance reported by Coinbase is vividly illustrated by the shifting strategy of MicroStrategy, the NASDAQ-listed company that became synonymous with corporate Bitcoin adoption.
From Aggressive Accumulation to Measured Purchases
As highlighted by crypto analyst Maartunn, MicroStrategy’s once-aggressive accumulation strategy has "slowed dramatically" in recent months. At its peak in 2024, the company was making headlines with billion-dollar allocations and weekly purchases exceeding 10,000 BTC. Recently, however, its buying pace briefly dwindled to just around 200 BTC per week.
Maartunn was careful to note that the company’s "long-term conviction in Bitcoin remains intact," but its "ability to sustain large-scale purchases has weakened." This nuance is critical: it may not be a loss of faith but rather a constraint of capital, market conditions, or corporate strategy that is tempering its buying frenzy. The analyst emphasized that MicroStrategy “is no longer buying big, but they’re still buying,” a statement later corroborated by the company’s purchase of 390 BTC for $43.4 million on a Monday in late October. While this demonstrates ongoing commitment, it is a far cry from the market-moving acquisitions of the past.
Contrasting Moves: Prenetics and American Bitcoin Corp Buck the Trend?
Despite the overarching trend of DAT retreat, the landscape is not entirely barren. Two public companies have recently made significant moves to expand their crypto holdings, though their motivations and scale provide important context.
Prenetics Global: A Diversified Approach
Prenetics Global, a Nasdaq-listed health tech company, represents a different model of corporate crypto engagement. The firm recently completed an oversubscribed $48 million equity raise. While one stated goal is to "bolster its Bitcoin treasury reserves," it is simultaneously seeking to "scale up its IM8 supplement brand." This indicates that Bitcoin is part of a broader corporate growth strategy rather than the sole focus, as it is for MicroStrategy.
The offering attracted investment from a range of crypto-native entities, including Kraken, Exodus, Jihan Wu’s GPTX, DL Holdings, and American Ventures. High-profile individuals like tennis star Aryna Sabalenka and Hong Kong magnate Adrian Cheng also deepened their investments, with football legend David Beckham remaining a shareholder. Prenetics disclosed that it could receive up to $216 million if all associated warrants are exercised, suggesting significant potential future firepower for its operations, including possible further Bitcoin acquisition.
American Bitcoin Corp.: A Trump-Linked Miner Accumulates
In a more direct parallel to traditional DAT activity, the Nasdaq-listed American Bitcoin Corp., founded by Eric and Donald Trump Jr., has substantially grown its holdings. The company acquired 1,414 BTC, worth over $160 million, bringing its total stash to 3,865 BTC (worth approximately $450 million as of October 24). Importantly, these holdings are sourced from both its own mining operations and open-market purchases.
According to data from BitcoinTreasuries, this accumulation places American Bitcoin Corp among the top 26 public holders of Bitcoin globally, ranking just behind Gemini Space Station and ahead of OranjeBTC. As a mining company, its business model is intrinsically linked to Bitcoin, making its accumulation less of a discretionary treasury allocation and more a function of its core operations.
Strategic Conclusion: Navigating a Fragile Institutional Landscape
The current state of institutional demand, as detailed by Coinbase’s report, paints a picture of a market at an inflection point. The "ghosting" of Bitcoin by major DATs following the October crash has removed a key pillar of price support and market confidence. The fact that this disengagement persists even during brief rallies is a strong indicator of wounded institutional conviction.
The reliance on a single entity, Bitmine (BMNR), to prop up Ethereum’s corporate demand introduces a clear vulnerability. The slowdown from MicroStrategy serves as confirmation that even the most stalwart corporate adopters are feeling the pressure of current market conditions or internal capital constraints.
However, the continued activity from players like Prenetics and American Bitcoin Corp shows that the corporate crypto narrative is not dead—it is evolving. The focus may be shifting from pure-play treasury allocation (the MicroStrategy model) to more integrated approaches where crypto supports broader business goals or is a direct product of core operations (mining).
What to Watch Next:
- Bitmine's (BMNR) Purchasing Patterns: Any deviation from its current accumulation rate for Ethereum will be an immediate bellwether for institutional ETH demand.
- MicroStrategy's Next Earnings & Announcements: Closely monitor their statements on future BTC acquisition strategy and their ability to fund further purchases.
- Broader Macroeconomic Indicators: Institutional crypto demand is highly sensitive to interest rates and traditional market performance. A shift in the macro environment could be the catalyst needed to bring DATs back into the market.
- Q4 Treasury Reports: As public companies file their end-of-year financials, scrutinize their balance sheets for changes in digital asset holdings to see if Coinbase’s observed trend is confirmed across the board.
For now, the message from Coinbase is clear: the institutional bid is fragile, concentrated, and warrants a defensive short-term posture from market participants. The era of relentless corporate buying providing a steady tailwind for Bitcoin appears to be on pause, leaving the market searching for a new foundation.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.