Key Insights
- Crypto treasury companies are moving money out of Bitcoin into fringe tokens in search of greater risk-taking profits.
- Private placements fund token purchases, adding shareholder dilution and stock price volatility.
- Several crypto treasury companies trade below net asset value amid slowing bitcoin markets.
Public Crypto Treasury companies are changing strategies as bitcoin demand weakens and markets turn unstable. Many firms now buy thinly traded tokens, and this movement raises new concerns because these assets hold less liquidity yet attract fast-growing corporate interest.
Crypto Treasury Firms Expand Into Lesser-Known Tokens
Public Crypto Treasury firms are moving toward new tokens as the Bitcoin market slows. Many companies want new ways to lift returns, so they now buy assets with less trading depth. This change has drawn attention because these tokens move quickly in stress periods.
Reuters reviewed dozens of recent filings from smaller firms that want entry into the digital-asset market. Companies such as Greenlane, OceanPal, and Tharimmune announced plans to buy tokens like BERA, NEAR, and Canton Coin. These tokens have limited market depth, yet they continue to attract new capital.
Analysts say the shift shows how stock markets and crypto markets are mixing more than before. Crypto treasury firms often rely on fast capital raises, so they try to reach higher returns with new assets. Moody’s Ratings noted that thinly traded tokens can move sharply when selling pressure rises.
This trend comes at a time when market attention around bitcoin is lower. Some companies reported weaker performance as bitcoin slipped in recent months, so they now test other assets. The Crypto Treasury model is expanding as new firms join the space each week.
Funding Moves Shape Crypto Treasury Market Pressure
Many crypto treasury firms support these purchases through private placements. These deals allow companies to raise cash by selling new shares to investors. Reuters found that more than $15 billion was raised by these firms between April and November.
The companies usually sell in a discounted manner in order to attract cash earlier. It can assist them in purchasing tokens but it also can put a strain on the share prices. New shares may be released to the market when the lock up period expires and result in increased volatility.
Forward Industries and BitMine both saw strong swings in October during a broader market pullback. Their stocks fell by double digits as tariff news hurt sentiment. Strategy, a larger bitcoin-focused firm, also fell by several points during the same period. These moves show how funding methods can affect both token markets and equity markets.
Some firms believe market conditions may improve. Presto Research said the early excitement around these companies has slowed, yet interest could return with new tokens and new strategies. Several firms declined to comment on their current plans.
Market Performance and Shareholder Concerns
Many crypto treasury companies once traded above the value of their token holdings. Investors expected strong growth because of access to credit and fast token purchases. This trend has shifted with increasing firms joining the market and a slight reduction in the prices of Bitcoins.
There are at least 15 Bitcoin-related businesses that are currently trading in the negative. Research teams indicate that retail traders have suffered huge losses on such trades. Certain companies accepted the share buyback to favor prices when the markets are not stable.
DAT companies now hold meaningful amounts of major tokens. Standard Chartered reported that they hold 4% of all Bitcoin, 3.1% of all Ethereum, and 0.8% of all Solana. Because of this, analysts say their decisions can move prices when markets weaken.
Several companies say they plan to adapt. SUI Group launched its own stablecoin to create new revenue channels, and ETHZilla said it continues to expand its on-chain plans. Firms say long-term growth depends on careful investment decisions and new ways to build shareholder value.
