Key Takeaways
Why is Bitcoin corporate support weakening?
ETF outflows, shrinking stablecoin supply, and falling DAT premiums reduced liquidity and weakened balance-sheet models tied to Bitcoin.
Are Bitcoin corporations at risk or Bitcoin itself?
Corporate treasuries may face debt stress, but Bitcoin’s network remains unaffected and continues operating independently.
Bitcoin’s grown-up phase may come with the same messy problems as adulthood: bills, debt, and bad timing. The very players who lifted it (ETFs, treasuries, and corporate mega-buyers) are now the ones dragging it lower.
Research reports say the reflexive loop is broken. So perhaps the music has stopped and the liquidity is leaving the room.
The liquidity reversal begins
For most of 2025, Bitcoin [BTC] ETFs pulled billions into the market, driving prices higher. Digital asset treasuries (DATs) added demand with shares trading at premiums, and growing stablecoin balances kept liquidity flowing across crypto markets.
Source: NYDIG
NYDIG’s latest report showed that all three of these engines have now reversed.
Spot Bitcoin ETFs saw four straight weeks of outflows, including $1.22 billion between the 17th of November to the 21st. What used to be a steady inflow of buyers has turned completely into selling pressure.
Source: X
DAT premiums have collapsed, reducing the incentive for corporate-style Bitcoin buying.
AMBCrypto previously reported that crypto treasuries have lost over $45 billion as top assets fell 30-50%, though some VCs argue that DATs aren’t inherently net sellers.
SharpLink and a few other firms offloaded small amounts, but most large DATs have not sold holdings, leaving their long-term impact still debated.
Source: NYDIG
Stablecoin Supply also shrank for the first time in months, so liquidity is leaving the system.
Source: NYDIG
By contrast, BTC.D strengthened only because other crypto assets weakened faster. Capital moved inward for safety, not conviction.
Strategy, the balance sheet time bomb
MSTR is the clearest example of how Bitcoin’s biggest champions can turn into dead weight.
For years, the company was held up as proof that a corporate balance sheet could be rebuilt around Bitcoin. Now it’s showing how weak the idea is when the math stops cooperating.
The headline numbers still look huge. Nearly 650,000 Bitcoin, over 3% of the total supply, and a balance sheet that’s three-quarters Bitcoin.
But the floor is cracking. The problem starts with cash… or rather, the lack of it.
Strategy Inc. has $54 million in cash but owes $700 million a year in preferred dividends, a bill that comes before anything else. Its software business is losing money, forcing the company to raise new capital just to cover old obligations.
In the first nine months of 2025, nearly $20 billion went not into buying Bitcoin but into servicing debt.
This loop only works when markets are generous. It ended in November.
Strategy’s model relied on its shares trading above the value of its Bitcoin. Once shares fell to match the NAV, issuing new shares stopped helping and started diluting.
The company raised its preferred dividend from 9% to 10.5% to attract investors, but each increase only made the burden heavier.
If shares keep falling, the dividend keeps climbing, pushing Strategy closer to selling Bitcoin to survive. That’s something it had long vowed not to do.
October’s crash already showed how thin liquidity gets under stress. Even selling 100,000 Bitcoin could overwhelm the market.
The 90 day countdown
According to writer Shanaka Anslem Perera, the pressure could escalate on the 15th of January, when MSCI decides whether companies with more than 50% of assets in digital currencies will be excluded from major indices. Strategy sits at 77% Bitcoin.
The 10th of October crash showed how MSCI fears and a bearish JPMorgan note could trigger massive selling; Saylor later clarified that Strategy is an operating company, but uncertainty remains until the policy is finalised.
Source: Substack
JPMorgan estimated $2.8 billion in forced index-fund selling. Total outflows could hit $8.8 billion.
That’s 15-20% of Strategy’s market cap, liquidated by algorithms that do not care about mission statements or Bitcoin maximalism.
ETF outflows, DAT contraction, stablecoin shrinkage… they’re all arriving just as Strategy’s funding model approaches its breaking point.
Bitcoin will survive. The model will not.
Even as corporate risk mounts, sovereign confidence appears undisturbed.
Case in point, El Salvador bought $100 million worth of Bitcoin during the latest spree. Keep in mind that sovereign buyers operate on decade-long horizons, while corporations operate on 90-day refinancing cycles.
Source: X
That means, Bitcoin is not in existential danger. However, the corporate Bitcoin-treasury model may be.
The believers are still believers. But the market no longer cares about their belief. It cares about liquidity.
And for the first time in Bitcoin’s institutional era, its biggest advocates may become its biggest source of fragility. The next 90 days will determine not whether Bitcoin survives, but which institutions survive with it.
