Are US-listed companies flocking to "buy Cryptocurrency"? How effective is the second growth curve?

"Buying crypto" has become a cheap and quick way to boost market cap in the stock market. The "altcoin season" craze in the U.S. stock market is in full swing, with the main business of listed companies becoming a mere accompaniment, and digital assets turning into a new market cap engine. But the problem is becoming increasingly acute: will the market really continue to pay for this valuation game in the name of crypto? Valuation Logic: How Does Buying Crypto Affect Enterprise Value? "Buying crypto" is like a valuation deviation experiment intertwined with emotion, liquidity, and narrative. In the traditional valuation framework, a company's market cap stems from the comprehensive pricing of core variables such as its profitability, balance sheet structure, growth potential, and free cash flow. However, in this round of "crypto buying spree," companies are leveraging the market's repricing of their valuations through the "financial allocation" behavior of holding crypto assets. When a company includes Bitcoin or other mainstream crypto assets on its balance sheet, the market's valuation of it is attached with a premium multiple based on the price elasticity and trading expectations of the crypto assets. In other words, a company's market cap comes not only from value creation, but also from the leveraged amplification of the possibility of "crypto price increases." But this structure almost places the "liquidity narrative" above the company's operations, transforming financial allocation into the main axis of capital operation. Short-Term Boost, Long-Term Remains a Question Mark It is undeniable that entering crypto does have the ability to stimulate stock prices in the short term. Take Cango, an automotive trading service provider, for example. In November 2023, the company announced its entry into the Bitcoin mining field, investing $400 million to purchase 50 EH/s of computing power resources, and its stock price soared 280%. Similarly, there are many companies with mediocre main business performance, or even deep in financial difficulties, that are also trying to seek revaluation in the capital market by using the "buying crypto" narrative. (Related reading: ETH, SOL Version of "MicroStrategy" Trend: A New Type of Speculation Script Driven by Both Crypto and Stocks?) We have compiled a batch of listed companies' stock price data that have achieved "crypto-stock linkage" through the purchase of cryptocurrencies: From the market performance, the phenomenon of "buying crypto equals skyrocketing" has been staged many times. As long as the concept of "crypto assets" is put forward, short-term funds will quickly pour in. However, after the short-term surge, many "crypto-holding companies" face stock price corrections. If there is no continuous crypto purchase or other positive news to continue to stimulate, the gains are difficult to maintain. Therefore, although the "buying crypto" strategy can stimulate market enthusiasm in the short term, whether it can be transformed into the company's long-term competitiveness and sustainable growth is still full of uncertainty. The market is also difficult to truly recognize those followers who only seek attention by buying crypto once or twice or with vague "crypto-holding plans." Are Speculators Starting to Sell? The story of "buying crypto to boost valuation" continues to ferment, but some core players seem to be quietly taking profits. Strategy, the proposer of this "infinite growth" theory, has had its internal executives reducing their holdings of $MSTR stock. According to SecForm4.Com data, since June 2023, Strategy insiders have entered a concentrated selling period. Protos reported that in the past 90 days alone, executives have sold a total of $40.00 million worth of stock, with the number of sales being 10 times the number of purchases. Image source: secform4.com "Sol-version MicroStrategy" Upexi has also been facing pressure recently. The company previously raised $100 million to establish a Sol treasury. However, Upexi plummeted 61.2% in intraday trading yesterday, as investors registered to sell 43.85 million shares, equivalent to its initial public float in April. (Related reading: SOL Returns to $150, Upexi Transforms into "Solana Version of MicroStrategy," Is Infinite Growth About to Begin?) On the other hand, stablecoin issuer Circle's stock price once soared to nearly $300 after its listing. However, Ark Invest, which strongly supported it before it went public, has been continuously reducing its holdings. It is reported that Ark Invest has sold Circle shares four times in a row, with a cumulative reduction of more than 36% of its holdings. When "buying crypto" becomes a packaging, a market cap tool, and even a narrative shell to avoid fundamental questions, it is also destined to not become a "passkey" for all companies. Today's market is willing to pay for "financial allocation," but tomorrow's market may return to the real pursuit of growth and profitability. The buy-in of the secondary market is not necessarily recognition; more likely, it is the turnover of short-term speculative chips. [ChainCatcher]