The stock market and cryptocurrency market were once 'parallel lines' in the financial circle – the former being a 'safe harbor' protected by a century of rules, and the latter being the decentralized 'wild west', with mutual grievances between investors. However, this year, this pair of 'enemies' suddenly 'married', giving rise to the highly anticipated 'cryptocurrency stocks', making stockholders the new payers in this capital narrative.
1. Cryptocurrency Stocks: Giving Cryptocurrency a 'Stock Coat'
Cryptocurrency stock companies, simply put, are publicly traded companies that incorporate cryptocurrency into their balance sheets. They hoard cryptocurrencies like building a 'digital vault', which can be categorized by reserve currency into Bitcoin treasuries (166 companies), Ethereum treasuries (72 companies), and altcoin treasuries (limited in number).
Among them, the most legendary is Strategy. In 2020, it was an endangered company with a stock price of $16, which turned around by hoarding Bitcoin: acquiring 629,000 Bitcoins at an average price of $73,000, with a current value of over $74.8 billion based on a price of $119,000. Now its stock price is nearly $400, with a market value exceeding $100 billion, becoming a component of the Nasdaq 100. Its secret is the 'market value premium game': issuing additional shares to buy Bitcoin, then leveraging the increase in Bitcoin's price to drive up the stock price, creating a positive cycle.
2. Leverage and Capital: The Operating Code of Cryptocurrency Stocks
Investors are willing to pay a premium for cryptocurrency stocks, primarily for three reasons: optimistic expectations for cryptocurrency appreciation; lowered compliance thresholds (providing a channel for institutions/retail investors that cannot directly buy coins); and companies' low-interest leverage strategies – raising funds through private placements, market price offerings, convertible bonds, reverse mergers, etc., using low-cost capital to expand coin purchases and enhance risk resistance.
This year, U.S. publicly traded companies have planned to raise $91 billion to buy cryptocurrencies. Companies like Strategy initially relied on convertible bonds for financing, and later on issuing additional shares at inflated stock prices, becoming a benchmark for fundraising.
In terms of business models, cryptocurrency stocks are divided into two categories: one type, like Strategy, specializes in 'hoarding coins for appreciation', which attracts a large number of followers due to its low threshold; the other type is more rational, treating crypto assets as a supplement to traditional business, with Ethereum treasury companies being the majority – after all, besides appreciation, ETH can also be staked for interest.
The Ethereum treasury is divided into two factions: SharpLink is backed by Ethereum's native capital (such as Consensys, Pantera, etc.), while BitMine is a product of Wall Street (backed by Galaxy Digital, ARK Invest, etc.). BitMine relied on aggressive expansion and 'storytelling', raising 83,000 ETH in just 35 days, becoming the largest Ethereum treasury company in the world.
3. Is the Craze Fading? The Fate of Altcoins Replayed in Cryptocurrency Stocks
The allure of cryptocurrency stocks is evident: after SharpLink announced its treasury strategy, its stock price soared by 433% in a single day, while BitMine surged from $4.26 to $135 in just a few days, with even companies on the brink of collapse able to increase their stock prices by 15 times through 'hoarding coins'.
But what goes up must come down. Strategy's market value premium dropped from 2 times to 1.49 times, and BitMine's stock price was halved to $62 (even though ETH is still rising). What is even more concerning is the 'fate of altcoins': the median return of treasury stocks holding mainstream coins is 92.8%, while the median for altcoin treasury stocks is -24%, with Hyperion DeFi and others even dropping over 60%.
Behind this is the operation of project parties using cryptocurrency stocks to 'pump and dump' (for example, ETH rose by 58% in a month due to institutional buying), as well as the reality of companies rescuing themselves through hot trends. For investors, while cryptocurrency stocks provide a low-threshold entry point, the volatility risk far exceeds that of traditional stocks.
After all, cryptocurrency stocks are a new game of capital. In the current craze, most followers will eventually be shuffled out, and only mainstream cryptocurrencies and strongly endorsed projects may laugh last – for ordinary investors, perhaps buying coins directly is simpler than deciphering the tricks of this 'cross-industry marriage'.
Disclaimer: The content of this article is for reference only and does not constitute any investment advice. Investors should consider their own risk tolerance and investment objectives, rationally view cryptocurrency investments, and avoid blindly following trends.