Small and mid-cap U.S. stocks ignite a "crypto reserve race," with 30 companies seeing their stock prices surge by up to 438%.
More and more small and mid-cap publicly listed companies are following Strategy's lead by including Bitcoin, Ethereum, and other crypto assets in their balance sheets, attempting to reshape valuation logic through capital operations.
Since Strategy first purchased Bitcoin in 2020, this strategy has seen a concentrated outbreak by the end of 2024.
According to PANews, currently, 30 U.S. publicly listed companies have officially announced their crypto reserve plans, covering multiple industries such as fintech, healthcare, education, and new energy.
Especially for companies like SharpLink Gaming, Semler Scientific, and Quantum BioPharma, which have been limited in growth and stagnant in valuation, crypto reserves are seen as a financing breakthrough and a new narrative for the capital market. For example, after SharpLink announced the allocation of Ethereum, it quickly secured $425 million in funding, and its market value increased tenfold.
Currently, $BTC remains the core reserve, with about 20 companies including it in their asset portfolios, followed by $ETH, with some companies also allocating SOL, TRX, XRP, and other altcoins.
Some projects have even received support from crypto capital, such as SRM Entertainment, which received support from Sun Yuchen, and its trading volume once surpassed Alibaba and Tencent. DeFi Technologies and Siebert Financial adopt a multi-asset mix strategy, seeking a balance between risk resistance and market speculation.
These enterprises are mostly concentrated in the $100 million to $1 billion market value range, but their reserve targets often far exceed their market value, creating a high-leverage effect. Strategy aims to reserve $10 billion, Trump Media targets $2.5 billion, and Cantor Equity aims for $30 billion.
In the short term, the average stock price increase for these companies reached 438%, with Strategy surging by 4,315%. However, the valuation bubble and liquidation risk are simultaneously rising.
As the crypto reserve model becomes popular, the controversy has also intensified. Bitcoin Magazine CEO bluntly stated, "Capital reallocation is no longer an option"; Blockstream CEO warned that "Bitcoin vaults are eating into the market share of publicly listed companies"; Coinbase CEO admitted that he once considered investing 80% of assets in Bitcoin but ultimately chose 25% to avoid breaking the funding chain.
Sygnum is even more worried that over-concentration may weaken Bitcoin's potential as a central bank reserve asset. Max Keiser questions that future bear markets will be the true test for these companies.
Overall, the crypto reserve craze has brought short-term valuation explosions and financing channels, but in the long term, it still faces challenges such as asset cycles, execution capabilities, and regulatory tightening. The "Bitcoin vault" players who truly possess sustained value-adding capabilities still need time to be validated.