Digital Asset Treasury Firms Continue to Buy Bitcoin and Ethereum. That's Why I'm Bullish on These Two Cryptocurrencies.

Even after many of their smaller peers gave up over the past 12 months, the biggest digital asset treasury (DAT) companies are still buying Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). When they do, it means there are fewer coins available for everyone else who might want to buy them. In the week ending Nov. 1, Strategy (NASDAQ: MSTR) bought 811 BTC, and Bitmine Immersion Technologies (NYSE: BMNR) bought 8,573 ETH.

Their pace of buying is down to a trickle compared to a year ago, but for the coins themselves, that doesn't stop me from being bullish about how they'll perform. Here's why.

Image source: Getty Images.

Strategy gobbled up the newly mined Bitcoin in Q2

DAT companies sell their stock, preferred shares, or debt to the market to raise capital that they then use to buy and hold crypto. When the market caps of these crypto treasury stocks fall beneath the value of the coins on their balance sheets, that plan stops working, and they often need to sell. Per Bitwise Asset Management's October 2026 report, at least a dozen businesses that launched Bitcoin treasuries in 2025 have since sold every coin, mostly to repay debt or return cash to shareholders.

Even Strategy, the pioneer of this entire business model, had to sell some of its Bitcoin to cover its needs.

In its third-quarter earnings report, it said it had sold $431.8 million of Bitcoin this year so far to fund the preferred dividends associated with some of its classes of shares, and also to fund stock buybacks for some classes of its shares. Strategy holds a total of 849,327 BTC as of Nov. 5, or about 4% of Bitcoin's 21 million coin cap. So far, it's still a net buyer despite making some sales.

Because it was still buying, the available supply of newly mined Bitcoin wasn't large enough to make up for the demand. Bitcoin mining currently creates 450 BTC daily. Strategy's hoard grew by 83,901 BTC in the second quarter, which was 205% of miners' output in that period. In Q3, its net additions shrank to 1,666 BTC, or about 4% of new supply, per Cointelegraph's tally of company filings.

Now, think about that classic diagram in every economics textbook which shows how (in theory) the price of an asset changes based on how much supply is produced relative to demand.

Strategy's purchases don't change anything about Bitcoin's fundamental properties, like its supply limit or how much miners can produce. However, it isn't the only buyer, and it controls a meaningful slice of the supply already. That means as Bitcoin's mining reward declines over time as a result of its halving, new buyers will need to compete with each other to secure a slice of their own. That's bullish.

Can Ethereum experience the same supply squeeze?

Unlike Bitcoin, Ethereum has no supply cap, which means that DAT companies have a higher bar to clear in terms of exerting supply pressure before their efforts have a chance to translate into higher prices for the coin.

At the Ethereum network's current level of activity, the coin's supply increases by around 0.8% annually, which is approximately 2,764 ETH created on a daily basis. The network pays those new coins to stakers, while part of each transaction fee on the blockchain is destroyed to prevent the increases to the circulating supply from diluting holders much.

As of Nov. 5, Bitmine, the largest Ethereum treasury company, held 6,060,506 ETH, or 4.9% of the supply, and has bought more each week since June 30, 2025. In the last week of October, its purchases were worth 44% of Ethereum's net new weekly supply.

For Ethereum, the reason to be bullish is that Bitmine and other DATs buying the coin is just one avenue for it to gain in value. As its network activity increases, more Ether will be burned, putting upward pressure on prices. With an entire ecosystem of decentralized finance (DeFi) projects, services, and tokens that provide value, the chain has quite a few different avenues for growing network activity and subsequently boosting the price of Ethereum. That variety is one reason it can anchor a well-balanced crypto portfolio alongside Bitcoin.

Some of those projects in the ecosystem will inevitably flare out or become irrelevant, but even that process constrains the available Ethereum for buyers.

So, it makes sense to bet on the coin over the long term.

Alex Carchidi has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.