Strategy (MSTR), the company whose bitcoin accumulation strategy inspired a new generation of so-called digital asset treasury firms, sold BTC for the first time since December 2022, offloading roughly $2.5 million worth of tokens.

The move came as the scheme has faced major headwinds since gaining popularity last year.

Dozens of companies raised capital through stock and debt offerings to buy bitcoin, ether (ETH) and other cryptocurrencies, aiming to replicate Michael Saylor’s playbook. The model worked for a while last year as crypto prices surged and treasury stocks traded at premiums to their underlying values.

However, that all changed as crypto markets peaked in October. As token prices fell and treasury stocks slipped below net asset value, many firms lost the ability to raise capital on attractive terms, and some stocks fell more than 90% from their peak. Some stopped buying, while others turned into sellers.

Through all that, Strategy held strong and kept buying as its Executive Chairman, Michael Saylor, continued to advocate for buying and holding.

But that didn’t hold for long. Strategy first alluded to a potential sale earlier in May and then finally reported the first sale on Monday, June 1. With Strategy breaking its accumulation streak and many peers stepping aside, some might think it’s the final nail in the coffin for the treasury firms, as the list of active buyers has now narrowed considerably.

Still buying

However, a few remaining companies continue to buy. Among them is Bitmine (BMNR), Tom Lee’s Ethereum treasury company.

The company purchased roughly $53 million worth of ETH last week and accumulated over 338,000 tokens through May, worth roughly $665 million at current prices. It holds more than 5.4 million ETH, making it the largest corporate holder of the token.

However, Tom Lee said the firm plans to slow its accumulation pace as it approaches its goal of owning 5% of the ETH supply.

Another Ethereum-centric Bit Digital (BTBT) returned to the market in May, buying $20 million worth of ETH. That was the company’s first purchase since October.

Some bitcoin-focused firms are still buying.

Strive (ASST) disclosed acquiring roughly 1,944 BTC in May, spread across multiple purchases, at a cost of about $150 million. Japan’s Metaplanet also reported a purchase in early April, when it acquired 5,075 BTC.

Hyperliquid Strategies (PURR), the treasury firm focused on buying HYPE, the native token of red-hot Hyperliquid blockchain-based exchange and its ecosystem, said it spent $216 million to buy 7.3 million tokens between early December and the end of April. Given HYPE’s surge to record highs, the return on that investment has more than doubled since then.

Despite last week’s sale, Strategy remained one of the largest sources of bitcoin demand through May, purchasing more than 25,000 BTC for over $2 billion.

The sellers

On the other hand, several firms have been reducing crypto holdings recently.

Nakamoto Holdings (NAKA), the bitcoin treasury company led by David Bailey, sold 284 BTC in March, about 5% of its holdings. Empery Digital sold 370 BTC in April to repay a term loan. Genius Group (GNS) said in April it liquidated its remaining 84 BTC to pay down $8.5 million of debt.

Meanwhile, others have abandoned the treasury model entirely.

Forum Markets, formerly known as ETHZilla, shifted its focus to tokenization earlier this year after selling roughly $114 million worth of ether.

VivoPower, which had planned to build an XRP-focused treasury, pivoted to data center and AI infrastructure in February, divesting its Ripple-related investments and XRP holdings.

Read more: Digital asset treasuries must now earn their keep