Listed companies are increasingly adopting altcoin treasury strategies, diversifying beyond Bitcoin (BTC) and Ethereum (ETH). Here are some key points about this trend ¹ ²:
- *Altcoin Treasury Strategies*: Companies are accumulating non-BTC digital assets, such as Solana (SOL), XRP, Binance Coin (BNB), and HYPE, to generate yield and diversify their treasuries.
- *Companies Involved*: SharpLink Gaming (SBET), Bit Digital (BTBT), Tron Inc. (TRON), BitMine (BMNR), and GameSquare (GAME) are some examples of companies that have adopted yield-enhanced treasury models.
- *Funding Methods*: These companies use various methods to fund their crypto treasuries, including:
- *Private Investment in Public Equity (PIPE)*: Used by companies like Interactive Strength to acquire Fetch.ai (FET) tokens.
- *Convertible Notes*: Used by companies like GameStop, Trump Media, and ProCap Financial.
- *Reverse Mergers or SPAC Deals*: Used by companies like Twenty One Capital and Strive Asset Management.
- *Existing Cash Treasury*: Companies like Tesla and Nexon use internal capital to accumulate crypto assets.
- *Benefits and Risks*: Altcoin treasury strategies offer potential benefits like yield generation and diversification, but also come with risks like market volatility and regulatory scrutiny. Nasdaq's recent move to require shareholder approval for issuing new shares to lift stock prices may slow the momentum of companies repositioning toward crypto-focused treasuries ² ³ ⁴.
Some notable companies with significant crypto treasuries include ⁵:
- *Strategy (MSTR)*: Holds over 636,505 BTC, valued at around $71.45 billion.
- *Trump Media & Technology Group*: Plans to raise $2.5 billion to establish a significant Bitcoin treasury.
- *GameStop*: Raised $1.3 billion via convertible notes to fund the purchase of approximately 4,710 BTC.
- *SharpLink Gaming*: Accumulated roughly 280,706 ETH, becoming one of the largest public Ether holders.$XRP
