Cryptocurrency Treasury Strategy: Saving Stops, Market Alarm Has Started

The “digital asset accumulation” model that has become a market trend is at the peak of a crisis. While Bitcoin is at $92.17K and Ethereum at $3.16K, two major companies leading this strategy have changed direction. The latest moves by Strategy and ETHZilla show that this business model is no longer sustainable.

Strategy: The Pioneer Has Halted Bitcoin Purchases

The company that created the entire business model made a major decision this week. According to SEC filings on Monday, Strategy saved $748 million through a stock sale to strengthen its cash position to $2.19 billion. But more importantly: the company has stopped its recent Bitcoin buying spree.

In just the past two weeks, the company purchased over $2 billion worth of Bitcoin. Now? They have paused. The reason is straightforward financial: Strategy needs $824 million annually for interest and dividend obligations from previous securities issuance.

The company’s software business is not generating enough profit to support these expenses, and Bitcoin itself pays no dividends. Therefore, they created a $1.4 billion reserve fund as a safety net. The company’s mNAV has fallen to 1.1, a signal that the market valuation premium has widened.

ETHZilla: From Ethereum Accumulation to Ethereum Liquidation

The narrative is even more dramatic for Thiel-backed ETHZilla. In August, the company underwent a bold pivot: from a biotech firm to a “Ethereum treasury company.” The stock price increased from $30 to $100 upon announcement.

But just three weeks later, and they have stopped accumulating. In a document filed last week, ETHZilla sold $74.5 million worth of Ethereum tokens to pay off senior secured convertible notes. This is the second sale in four months—last October, it also sold $40 million Ethereum for a stock buyback.

Until December 19, the company held 69,800 Ethereum tokens worth approximately $210 million at current prices. But even so, they continue to wait for more sales to raise the needed cash. The stock price has fallen to $6.38, down 93% from its all-time high.

Why the Halt? The Real Issue

The deepest problem is not just financial pressure. It is a structural obstacle in the business logic. The market’s unclear question remains: Why should Bitcoin or Ethereum be more valuable just because a public company holds them?

In the first half of the year, hundreds of companies followed the Strategy’s playbook. ETHZilla was also tested. But when crypto prices fell in October—Bitcoin dropped nearly 30%—the model became weaker. The pressure to sell to meet obligations increased beyond the ideology of long-term hodling.

Larger Implications

The momentum of “corporate crypto treasuries” has only recently become a major market narrative. Now, the halt by key players signals others. This is not just a technical adjustment—it is an indication that the model itself cannot sustain the large leverage and fixed obligations it entails.

For crypto enthusiasts, these steps are disappointing. For market observers, it is a lesson in the risks of a strategy dependent on continuous price increases. The pauses by Strategy and ETHZilla are not just temporary—they may mark the beginning of a larger shift in the crypto investment landscape.