- The number of public companies holding crypto assets has doubled over the past six months.
- Some crypto treasury companies are trading at prices far higher than the value of their digital asset holdings.
- Wall Street firms are selling new crypto-backed equities and investors are driving up share values.
- Complex filings sometimes hide the real relationship between a company’s value and its crypto assets.
- Experts warn that scams and risky “pump and dump” schemes are becoming common in this fast-growing sector.
In the last quarter, trading firms on Wall Street began selling new, crypto-backed stocks as investor interest in cryptocurrency exposure reached new highs. The popularity of these equities has led more companies with Bitcoin and other cryptocurrency holdings to list on global stock markets.
According to recent figures, public companies holding bitcoin have increased from fewer than 70 six months ago to more than 130 today. Companies now also hold other cryptocurrencies such as Ether, Solana, and XRP in their treasuries. The shares of these companies have surged, sometimes trading at multiples several times their net asset value in crypto.
Twenty One (CEP), linked with Tether and Bitfinex, reached more than 300% of the value of its bitcoin during its first day on public markets. Upexi saw its share price rise to more than four times its Solana holdings, while SOL Strategies traded at over eight times its net asset value in crypto. Circle (CRCL), which issues a stablecoin called USDC, launched its IPO at $31 and climbed to $138 within three trading days.
Corporate filings have played a role in these price swings. Detailed regulatory documents—such as bonds, warrants, and options—can make it difficult to connect the company’s stock price with the true value of its crypto assets. For example, Kindly MD‘s stock opened at $28.51 following its bitcoin treasury announcement but dropped to $13.69 within six hours, and fell below $8 after investors reviewed its 8-K and 424(b)(3) disclosures. At its peak, Kindly’s market price was more than 23 times its net asset value in crypto.
Industry experts note that an environment of rapid price gains has attracted scammers. Some small public companies have announced large crypto purchases—sometimes greater than their entire market cap—causing short-term price bumps before falling back. According to VanEck’s Head of Digital Assets, many of these actions appear to be “pump and dump” schemes, stating, “If the market cap is de minimus and there is no disclosure of new anchor investors, I assume it’s a scam.”
Wall Street’s recent embrace of crypto-based stocks has created both huge opportunities and increased risks, as manipulation and speculation grow in a market defined by volatile crypto treasuries.
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