Columbia Professor Says Corporate Bitcoin Reserves Fueled Market Crash
Professor Omid Malekan of Columbia Business School believes that corporate holdings of Bitcoin and other digital assets have played a key role in accelerating the recent market decline. According to him, large companies are not just passive holders but have become an active source of selling pressure.
Corporate withdrawals under the spotlight
“Any analysis of why crypto prices keep falling must include DAT — digital assets in reserves,” Malekan wrote on X. “In aggregate, we’ve seen massive withdrawals and exits from the market, and that has directly contributed to price declines.”
The professor pointed out that corporate treasuries, which once symbolized institutional confidence in Bitcoin, have now become a liquidity channel during periods of macroeconomic stress. Companies facing debt repayments or revenue slowdowns are increasingly converting their digital reserves into cash, amplifying downward momentum.
Few firms play the long game
Malekan emphasized that only a handful of firms are still treating crypto holdings as a strategic long-term investment rather than a speculative asset. “There are only a few companies truly working to add value and think ahead. I can count them on one hand,” he remarked.
Analysts note that the recent wave of Bitcoin selling by smaller publicly traded firms supports Malekan’s observation. Many of them accumulated digital assets during the 2020–2021 bull run but have since liquidated to shore up balance sheets.
Broader implications for market stability
Corporate outflows, combined with ongoing ETF redemptions and macro uncertainty, have created a feedback loop of selling pressure. Each liquidation event weakens sentiment, prompting further withdrawals from institutional and retail investors alike.
Experts suggest that the new challenge for Bitcoin’s ecosystem is not retail panic but “corporate deleveraging” — the quiet unwinding of crypto positions by treasuries and funds that once fueled the bull cycle.
Future outlook
While Malekan’s view sparked debate, it underscores a shifting perception of institutional involvement in crypto. What was once seen as validation of Bitcoin’s maturity is now emerging as a potential source of fragility.
If the pattern continues, future rallies could depend less on corporate adoption and more on decentralized market activity and organic demand. “Crypto’s next phase will test whether it can thrive without balance-sheet backing,” Malekan concluded.
Editorial Team — CoinBotLab