Crypto Treasury companies have begun to move to buy more than $ 7.8 billion worth of cryptocurrencies this week, with possible one of the largest corporate crypto grabs in recent history – especially for altcoins.
Cointelegraph has reviewed 16 statements of the company since Monday, which has announced a plan to buy or raise money for crypto. Ether (Eth) is the hottest target.
At least five public companies bought or pledged to buy more than $ 3 billion worth of ETH, which is almost 45 times more than ethical value Issued In the past week.
The so -called Crypto Treasury companies are the latest Wall Street Fad as a traditional financier, often prevented from direct crypto purchases or relevant exchange products, have looked to gain exposure to the rapid growing sector.
ETH’s popularity rises for corporate crypto bet
Bitcoin Miner BTCS Inc. on Tuesday Filed Plans to sell up to $ 2 billion in sharing to fund ether’s future purchases.
Joe Lubin’s Sharpink Gaming, whose Ethereum’s second largest Treasury company, has strengthened the total additional by purchasing $ 338 million worth of ETH with two separate purchases on Monday and Thursday.
The Ether Machine has also been taking this week, which bought 15,000 ETHs for about $ 57 million.
Meanwhile, two more Ether purchase companies were born this week, including a biotech firm 180 Life Sciences Corp Rebranding to Ethzilla Corporation to a $ 425 million deals and merchants primarily global rebranding In FG Nexus to a $ 200 million deal.
Crypto treasury companies are also hot with altcoins
Crypto treasury companies are also dazzling altcoins this week.
Altcoin’s largest announcement purchase came from Tron Inc., a stock company taken by Justin Sun’s Tron Blockchain, which said Monday that it wanted Raise $ 1 billion To buy a blockchain tron (Trx) token.
Another three companies have signed plans to buy either Solana (Sol), Sui (Sui) or bnb (Bnb) – a token with close relationship with Binance of the crypto exchange.
The most well -known firm of Treasury formed this week is CEA Industries, a Canadian vape company has turned Bnb purchase of firm After a acquisition of the investment firm 10x capital and Yzi Labs. The firm once described himself as the family office of Binance co-founder Changpeng Zhao.
It plans to raise at least $ 500 million with plans to potentially unlock up to $ 1.25 billion to buy BNB, which has been reported owned by Zhao and Binance.
On Thursday, Tech Company Cemtrex Inc. Says It bought a $ 1 million worth of SOL with the aim of expanding to $ 10 million, while on Monday, Lender Mill City Ventures III completed A $ 450 million deal to pivot on the purchase of Sui.
Crypto purchase companies hold $ 100 billion, but not without risks
Galaxy Research Analyst Will Owens write In a report on Wednesday that Crypto Treasury companies were collectively held by more than $ 100 billion worth of crypto, $ 93 billion of which was Bitcoin.
The business model does not have no risks, Owens said, and not all are equally appreciated as investors apply a “broadly different” equity premium on a company’s net asset value.
Michael Saylor’s approach, for example, has an equity premium of 58%, which Owens says reflecting “scale and maturity,” while Japan’s metaplanet has been exchanged with a premium of 179% due to the “aggressive model of capital formation.”
He added that the business model is “critically dependent on an ongoing equity premium in the NAV. If the premiums collapsed, or worse, flipped into a discount, the model is starting to break.”
“Treasury’s trade company is getting more tight,” Owens said. “When hundreds of companies adopt the same one-directed trade (raise equity, buy crypto, repeat), it can be fragile structures. A collapse of any of these three variables (investor sentiment, crypto prices, and capital market capital) can begin to resolve the rest.”
The approach helps boost the purchase of bitcoin
Bitcoin has remained a popular choice for crypto treasury companies such as strategy, with seven companies suggesting or buying a total of $ 2.7 billion in Bitcoin.
Approach, former microostrategy, Buy 21,021 bitcoin After raising $ 2.5 billion from the fourth preferred stock, STRC.
The UK’s Smarter Web Company also spent Nearly $ 26.5 million in 225 bitcoin, and metaplanet Buy 780 Bitcoin for nearly $ 92 million.
A new Bitcoin Treasury company has emerged through Energy Company Zooz Power Ltd. On Tuesday, included Plans for a $ 180 million deal to buy bitcoin.
Magazine: Crypto entrepreneurs have cheated themselves’ on price predictions – Peter Brandt
