The Bitcoin strategy model, which raises funds through public markets to build a large treasury of cryptocurrencies, is now expanding beyond BTC.
Recent steps indicate a growing wave of public cryptocurrency companies (PCVs) targeting alternative currencies. This raises questions about motivations, sustainability, and the upcoming evolution in institutional cryptocurrency adoption.
XRP and Solana join Bitcoin in a new wave of public treasury bonds for cryptocurrencies
On June 2, BitGo announced a strategic partnership with VivoPower, which recently transitioned to a digital asset strategy focused on XRP.
Backed by a $121 million funding campaign, VivoPower will purchase $100 million worth of XRP through BitGo's over-the-counter (OTC) trading platform. Meanwhile, BitGo's platform will be used to securely custody cryptocurrencies.
In an official press release quoted by Kevin Chin, CEO and Chairman of VivoPower: "VivoPower is committed to generating value for our shareholders by building a leading strategy for a digital asset treasury."
Mike Belshi, CEO of BitGo, expressed this view. He pointed to VivoPower's commitment to digital assets as evidence of the increasing institutional momentum around its ecosystem.
In parallel, Class Over Holdings (KIDZ on NASDAQ) signed an agreement with Solana Growth Ventures. The company will issue secured convertible bonds with priority worth up to $500 million.
The first $11 million will be used to fund Solana purchases. Meanwhile, up to 80% of the net proceeds will be used to build a treasury in Solana.
The Nasdaq-listed education technology company aims to replicate the success of other VCP companies that saw a significant rise in their stock prices following announcements of large crypto treasury bonds.
John Deaton, an advocate for XRP, says this is not a marginal phenomenon, pointing to a trend that was expected.
After seeing Bitcoin become the best-performing asset as well as the best Exchange-Traded Fund in history, Wall Street wants to try to replicate this success (even if on a much smaller scale) and earn fees in the process... I also said that what Saylor was doing with Bitcoin - turning it into an institutional treasury asset - is likely to be emulated by other companies (albeit on a much smaller scale) and implement a similar strategy with some alternative currencies, including ETH, XRP, SOL, and so on. Both of these things are happening," Deaton noted.
Deaton clarified that he does not necessarily support this trend.
Skeptics warn of the risks of exaggeration.
However, critics and observers warn of financial engineering disguised as cryptocurrency adoption. Web3 analyst, Hitesh.Eth, argues on Twitter that virtual currency trading platforms are now being used to support speculative stock rises, even without providing long-term value.
"Its success [the strategy] has created a new wave where many public companies ended up raising money against their shares," Hitesh wrote.
He added that institutional investors and venture capital are now trying to recreate the "Saylor Effect" using alternative currencies like Solana (SOL). Specifically, they are issuing shares to raise the necessary capital to purchase cryptocurrencies, then generating buzz through influencers and stock narratives on-chain.
Hitesh warned that not everyone can be like Saylor, noting that individual investors may find themselves lacking liquidity to exit if the game becomes speculative.
Others see similarities between these events and past market frenzies, with one user on X comparing this moment to the SPAC boom in 2020 and the meme stock craze in 2021.
Once they announce their purchasing plans using Bitcoin, Ethereum, Solana strategies, etc., they continue to release huge bullish candles. This reminds me of the SPAC stock craze in the second half of 2020 and the rise of meme stocks/cryptos in early 2021. Knowing that speculation at that time lasted almost a year, as the user noted.
The general split is that these new moves in XRP and SOL treasury bonds could be long-term strategic bets or short-term stock catalysts.