According to BlockBeats, US-listed companies are boosting their market value by purchasing cryptocurrencies, making digital assets the new market value engine. However, whether this valuation game can continue to attract market attention remains in doubt.
Companies are changing the market's logic regarding their valuations by holding crypto assets, where market value comes not only from value creation but also relies on the expectation of rising coin prices. However, this strategy places liquidity above business operations.
In the short term, entering the crypto market can indeed stimulate stock prices, as seen with Cango's stock soaring 280% after entering Bitcoin mining. However, in the long run, without continuous coin purchases or favorable news, such gains are difficult to maintain.
Some company executives have started to reduce their stock holdings, with insiders at Strategy selling a total of $40 million in stock since June 2023. Upexi and Circle are also facing similar pressure, with investors reducing their stock holdings.
When buying coins becomes a tool for market value, it cannot serve as a universal key for all companies. The market's willingness to pay for financial allocations may only be a rotation of short-term speculative chips.
