1. Introduction: Public Companies Rush to Allocate Bitcoin and Crypto Assets
The cryptocurrency market experienced a significant rebound in 2025, with Bitcoin hitting new all time highs and currently trading at USD 111,992. Some publicly listed companies have started including Bitcoin and other digital assets to their balance sheets as strategic reserves. According to a recent report, 61 public companies (whose primary businesses are outside the digital asset sector) have adopted a “Bitcoin Treasury Strategy,” allocating part of their cash reserves into Bitcoin. Many of these companies are looking to emulate MicroStrategy’s successful strategy of accumulating Bitcoin, particularly since 2020. Today, MicroStrategy holds over $63 billion worth of Bitcoin reserves, and its stock price has surged more than 30-fold since 2020. Bitcoin’s break above $110,000 earlier this year has fueled this “Bitcoin treasury” trend, with many doubling their Bitcoin holdings within two months, collectively holding close to 100,000 Bitcoin.
Notably, this trend is expanding beyond Bitcoin to other major cryptocurrencies such as Ethereum and Solana. Companies adopt cryptocurrency treasury strategies for various reasons: including hedging against inflation and fiat currency depreciation, generating yield through staking, and attracting the next generation of investors. For instance, SharpLink Gaming, a U.S. Nasdaq-listed company, raised $425 million in Q2 2025 and purchased 176,271 ETH in a single transaction. This makes SharpLink Gaming the largest public holder of Ethereum. Similarly, consumer goods company Upexi recently announced the creation of a Solana treasury, acquiring and holding SOL tokens in hopes of enhancing brand awareness and driving growth. Upexi’s strategy officer, Brian Rudick, stated that from a shareholder value perspective, it makes sense to allocate part of the capital to a digital asset treasury favored by the market rather than allocating all raised funds to traditional business areas. In practice, companies that embrace digital assets often receive positive responses from capital markets, with their stock prices outperforming those of their industry peers.
However, executing large-scale crypto purchases on the open market is difficult for companies and investors because such actions can increase acquisition costs and affect the market. Consequently, more institutions are seeking smarter, more gradual accumulation tools. In traditional finance, a well-known structured product helps investors do just that—the Accumulator. This article explains how the Accumulator works, its benefits and risks, and why it is becoming a “secret weapon” for corporate digital asset allocation. We also briefly introduce Matrixport’s differentiated services in this area.
2. What Is an Accumulator?
The Accumulator is an over-the-counter, structured, derivative product originating from the stock and foreign exchange (forex) markets. It enables investors to purchase an asset at set intervals over a specified period at a predetermined strike price, gradually building a position. In essence, an Accumulator contract locks in a fixed purchase price at which the investor will buy consistently, regardless of market fluctuations. Typically, the strike price is set below the spot price at the time the contract is established, enabling the investor to accumulate the asset at a discount.
A typical Accumulator contract includes the following key terms:
- Underlying asset: The cryptocurrency that the investor wishes to accumulate (e.g., BTC, ETH, SOL, etc).
- Strike price: The agreed-upon purchase price, usually slightly below the initial market price, providing a discount.
- Notional quantity: The total amount of the asset to be accumulated over the term of the contract, typically divided into fixed daily or weekly purchase amounts.
- Term and Frequency: The duration of the contract and how often purchases occur (e.g., daily or weekly).
- Knock-Out Barrier: A preset upper price threshold. If the asset’s market price reaches or exceeds this level during the contract term, the contract will terminate early. This “ceiling” prevents investors from buying at higher prices in an overheated market.
With this structure, the Accumulator effectively bets that the asset’s price will stay within the range defined by the strike price and knock-out barrier. As long as the market price remains below the knockout level, the investor continues to accumulate at the discounted strike price. Once the knockout level is breached, the contract terminates and accumulation stops.
It’s important to note that unlike options, an Accumulator is an obligation, not a right.The investor is required to buy the asset at the strike price throughout the contract period unless the knock-out condition is triggered. This characteristic makes the accumulator attractive as a disciplined accumulation tool but also highlights its risk if market conditions turn unfavorable.
3. How It Works: A Simplified Example
To illustrate the mechanics of the Accumulator, we will use Bitcoin as an example:
- Initial scenario: Assuming a spot price of $106,500 for BTC, we can proceed with the following calculation. A public company anticipates a moderate increase or stable market for Bitcoin over the next six months and aims to accumulate BTC in a measured manner without causing a surge in market prices.
- Set Contract Terms: The company has entered into a 6-month BTC Accumulator contract. The strike price is set at $95,000 (representing a 10% discount to the spot price), with weekly settlement and the purchase of 1 BTC per week. The cost of the knock-out barrier is $130,000. Therefore, during the term of the contract, as long as the price of Bitcoin (BTC) remains below $130,000, the company will accumulate 1 BTC on a weekly basis at a cost of $95,000.
This example illustrates the Accumulator’s fundamental logic: if market performance aligns with expectations, without significant fluctuations, the investor can steadily accumulate at a discounted price. In the event of a price surge, the product will be terminated to prevent high-cost purchases. If prices decline, investors must continue purchasing above market value, which could potentially result in paper losses. This “buy at discount, stop when high, buy more when low” strategy aligns with the Accumulator’s distinctive risk-reward profile.
4. Comparison of AQ, Selling Put Options Strategy, and DCA
Accumulator (AQ) is a structured product designed to accumulate digital assets over the long term and lower average entry cost. To better understand AQ’s advantages and limitations, we compare it with two common digital assets accumulation strategies:
In essence, DCA is straightforward and versatile, operating in any market. However, during bull runs, it can elevate the average cost, and in bear markets, there is a possibility of negative returns.
Selling put options can generate premiums or low-price entry in sideways/down markets, but is ineffective in a bull market.
Accumulator is an ideal choice for investors who believe in a long-term bull market. It strategically purchases at low prices during market dips and pauses buying during strong rallies, achieving a balance between cost efficiency and risk management.
For institutions with ongoing BTC allocation needs, Accumulator combines low-cost accumulation with protection against bull-market overpaying, outperforming both DCA and put-selling in choppy upward markets.
5. Advantages: Discounted Accumulation & Disciplined Investing
6. Risks and Precautions
While Accumulators offer numerous advantages, it is essential for investors to understand the potential risks involved to avoid making uninformed decisions.
- Market downturn risk: The primary risk associated with Accumulators is the possibility of price declines. If the price of the underlying asset falls significantly below the strike price, investors will still need to continue buying at the strike price, which is higher than the market price. This will result in floating losses. This point has been demonstrated in previous cases. Therefore, the prerequisite for adopting the Accumulator strategy is that investors maintain a long-term bullish outlook on the underlying asset and have sufficient capital and patience to continue fulfilling their obligations, even in the face of paper losses along the way.
- Loss of the right to withdraw: Once an Accumulator contract is signed, investors assume the obligation to purchase and cannot unilaterally withdraw midway (unless a knock-out is triggered). This approach ensures that even in the event of market fluctuations or changes in company strategy, the purchase process remains uninterrupted, a feature that is not present in traditional spot trading. For companies, this is a commitment that requires careful decision-making.
- Opportunity cost: In instances of extreme market conditions, whether characterized by a sharp rise or a sharp fall, the Accumulator’s pre-set mechanism may potentially hinder investors from capitalizing on optimal trading opportunities. For instance, in the event of a market crash, directly purchasing at the bottom of the secondary market is undoubtedly more cost-effective than purchasing at the strike price. However, the Accumulator does not permit the temporary adjustment of prices or the augmentation of buying intensity, thereby constraining flexibility. Conversely, if the market surges rapidly, triggering a knock-out, and continues to rise afterward, investors may not have purchased the planned positions due to the contract termination, thereby missing out on a portion of the price increase.
- Product complexity: The Accumulator is a type of over-the-counter structured derivative with complex contract terms, including parameters such as strike price, barrier price, observation frequency, and settlement cycle. Some Accumulators may also include additional terms (e.g., double accumulation clause: when the price falls below a certain level, the purchase volume doubles each period), further increasing the product’s complexity and risk. Therefore, investors must ensure they fully understand the contract details and assess whether their risk tolerance aligns with the product’s characteristics. Individuals with limited experience in this field are advised to seek guidance from reputable professional institutions.
In general, Accumulators are suitable for investors who are optimistic about long-term value, anticipate price range volatility, and have the capacity to withstand short-term volatility risks. Many companies, for instance, are strategically allocating resources to accumulate Bitcoin as a reserve asset, leveraging their long-term outlook and robust financial health to withstand short-term volatility. This approach enables them to acquire assets at lower costs and in a more stable manner. If you are considering using an Accumulator, it is essential to conduct stress tests and risk scenario analyses to ensure that the company’s financial condition can withstand adverse market conditions.
7. What are the key factors that influence corporate finance teams’ preference for Accumulator?
For companies that incorporate digital assets into their financial strategies, Accumulator offers a unique set of solutions tailored to their needs:
- A powerful tool for large-scale purchases: Purchases of corporate cryptocurrency frequently entail significant financial sums. If purchased directly from an exchange in a single transaction, this may not only drive up prices but also attract market attention (and even provoke attacks from speculators). Accumulator facilitates smaller, more manageable purchases over time, akin to dividing a large purchase into numerous smaller ones. This approach offers enhanced discretion and operational flexibility. It is improbable that market participants will detect the “grand plan” behind a single purchase. This will reduce market impact and slippage costs.
- Cost-controlled and budget-friendly: Corporate finance teams generally need to execute investments within budget constraints. The Accumulator allows CFOs to lock in the purchase price and planned total investment before the contract is executed, ensuring clarity on future expenditures. As long as the price does not trigger a knock-out, the plan proceeds steadily without forcing budget increases due to rising market prices. Additionally, if market conditions exceed expectations (price surges trigger a knock-out), subsequent budgets are saved, allowing the company to choose to observe from a high position or allocate funds to other purposes, offering flexibility and maneuverability.
- Long-term planning and reducing human interference are essential for achieving these goals. Many companies recognize the long-term value of Bitcoin and other cryptocurrencies. However, daily price fluctuations and market noise can disrupt decision-making. The Accumulator establishes an automated investment plan for the company in advance, ensuring that objective, data-driven decisions are made. Management is not required to monitor the market daily or to expend energy on the question of when to buy; rather, they simply execute the predefined operations according to the contract on a regular basis. This “long-term custody” strategy assists companies in maintaining focus on their long-term goals while resisting the temptation to be influenced by short-term incentives.
- Financial flexibility and returns: As previously stated, once the assets accumulated through the Accumulator reach the target position, companies can reap the benefits of the digital assets themselves. In addition, they can utilize the assets for staking, lending, earning interest, and other financial activities to generate further returns. Many companies implementing crypto treasury strategies will collateralize their held coins, such as the aforementioned company that purchased Ethereum, which staked over 95% of its ETH to earn blockchain validation rewards. Consequently, utilizing the Accumulator to develop a position does not impede a company’s ability to engage in financial transactions with its held crypto assets in the future. On the contrary, it expands the range of capital operation opportunities available to the company.
In summary, the Accumulator assists companies in implementing their crypto asset allocation strategies with greater intelligence. They acquire tokens without causing market disruption, thereby demonstrating professionalism and caution to investors. This explains why we are seeing an increasing number of institutions inquiring about and adopting such tools for digital asset investments.
8. Matrixport’s Four Key Advantages: One-Stop Structured Product Service
9. Conclusion
As Bitcoin and other digital assets become more prevalent, companies must address critical questions, such as how to acquire them, how to stagger purchases, and at what price to do so. Lump-sum purchases often incur high costs and risk, whereas leveraging structured financial tools is a more prudent choice.
The Accumulator is a cutting-edge instrument that allows for planned, cost-effective accumulation through discounted Strike Buys, Knock-out for stop-loss/take-profit, and disciplined execution. However, it does require a strong conviction in the market and a high level of risk tolerance. For enterprises that are optimistic about digital assets, AQ offers a balanced approach: steady strategic growth without reckless overextension.
We hope this primer clarifies the Accumulator’s mechanics and use cases. In the dynamic crypto landscape, the strategic application of financial engineering can yield substantial returns. Matrixport is prepared to serve as your partner in exploring digital assets and supporting your journey of financial innovation. If your company is considering allocating resources to cryptocurrency, we recommend exploring structured suites, including the Accumulator. This could be a pivotal step in your company’s future success.
Risk Reminder: Digital assets and their derivatives carry high volatility and risk. Investment decisions should be made prudently. This content is intended for educational purposes only and does not constitute investment advice.