In recent years, as traditional cryptocurrency plays gradually lose their appeal, a brand new capital operation model—the 'coin-stock model'—is quietly emerging in the US stock market.
An increasing number of publicly listed companies, especially small and mid-cap enterprises, are beginning to emulate MicroStrategy's approach by incorporating cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) into their balance sheets.
This move not only led to explosive growth in their stock prices but also sparked a new round of discussions in the market about corporate valuation logic and risk management.
How is the 'MicroStrategy effect' sweeping the US stock market?
The 'MicroStrategy effect' refers to the phenomenon where companies make large-scale purchases of cryptocurrencies as reserve assets, thereby attracting market attention and driving up stock prices.
Since August 2020, when MicroStrategy first included Bitcoin in its balance sheet, this strategy has gradually transformed from a niche experiment into a mainstream practice across industries.
According to statistics, 30 publicly listed companies in the US have officially announced cryptocurrency reserve plans, covering various fields such as technology, finance, healthcare, e-commerce, and entertainment.
Most of these companies face challenges such as sluggish core business growth and stagnant valuations, and by allocating cryptocurrency assets, they attempt to reshape the capital market's valuation logic for themselves.
The 'explosive increase' effect brought by cryptocurrency reserves
Data shows that companies following the 'MicroStrategy effect' have seen an average stock price increase of up to 438%.
Among them, MicroStrategy has seen its stock price increase by over 4300% since its first purchase of $BTC .
Companies like SharpLink Gaming and Asset Entities have also experienced several-fold or even dozens of times surges.
Take SharpLink Gaming as an example, which was on the verge of delisting due to poor performance, but after announcing Ethereum as its main reserve asset, it not only secured massive financing but also saw its market value soar from $2 million to tens of millions, completely changing market perception.
Diversification of reserve structure, coexistence of risks and opportunities
Although Bitcoin remains the most popular reserve asset, an increasing number of companies are beginning to allocate $ETH , XRP, $SOL , TRON, and other emerging cryptocurrencies, even adopting a multi-currency mixed strategy.
Some companies' reserve targets are even far higher than their own market value, creating a significant risk leverage effect.
This practice brings new financing channels and market attention to enterprises, but it also exacerbates risks related to valuation bubbles and market volatility.
Industry experts point out that some companies' large purchases of altcoins may be merely to inflate stock prices, raising suspicions of 'pump and dump'.
Market controversies and regulatory challenges
As more companies include cryptocurrency assets in their reserves, disputes surrounding risk management, market manipulation, and institutional adaptability are heating up.
Some believe this represents a paradigm shift in capital structure, and companies that do not hold cryptocurrency assets may be marginalized by the market in the future. However, others warn that excessive reliance on cryptocurrency assets, especially through high-leverage operations, may lead to severe financial risks.
For instance, the CEO of Coinbase has revealed that although the company holds some cryptocurrency assets, it will not invest 80% of its assets in Bitcoin, as a significant drop in coin prices would put immense pressure on the company's operations.
Conclusion: Strategic opportunity or bubble trap?
Undeniably, the 'MicroStrategy effect' has provided new vitality to small and mid-cap companies and elevated cryptocurrency assets from financial reserves to corporate strategy.
However, whether this model can be sustained remains to be tested by the market and time. How companies balance risk and return, and how they maintain asset transparency and sustainable development will be key to determining whether this trend can develop healthily.
For investors, facing the high-return temptation brought by the coin-stock model, it is crucial to be alert to the high risks behind it.
After all, in the capital market, there are no eternal hot spots, only ever-changing trends and challenges.
