In recent years, a growing number of listed companies have begun incorporating cryptocurrencies into their treasury management strategies. These firms, often referred to as "crypto treasury companies," hold digital assets such as Bitcoin (BTC), Ethereum (ETH), or various altcoins. Their stock performance often reflects broader trends in the cryptocurrency markets. This article examines six such companies, their treasury strategies, and how these decisions have impacted their stock prices.
How Public Companies Integrate Cryptocurrency Treasuries
Strategy (Formerly MicroStrategy) – MSTR: A Bitcoin-Focused Strategy
Strategy made headlines in 2020 when it announced Bitcoin as its primary treasury reserve asset. Since then, the company has consistently raised capital through equity, convertible bonds, and preferred stock offerings to accumulate more BTC.
On June 6, the company announced the pricing of its STRD preferred stock public offering. A total of 11,764,700 shares were issued at $85.00 per share, raising approximately $979.7 million in net proceeds. Strategy plans to use these funds for general corporate purposes, including further Bitcoin acquisitions.
This aggressive Bitcoin accumulation strategy has contributed to a year-to-date stock price increase of 38.51%. The market generally interprets these fundraising efforts as a strong vote of confidence in Bitcoin’s long-term value.
Metaplanet Inc. – 3350.T: Embracing Bitcoin as a Core Business
Japanese firm Metaplanet announced on December 18, 2024, that it would adopt Bitcoin treasury management as an official business strategy. The company has been steadily increasing its BTC holdings.
On June 25, Metaplanet issued 54 million new shares, raising ¥74.9 billion (approximately $515 million). The following day, CEO Simon Gerovich announced the purchase of an additional 1,234 BTC at an average price of $107,557 per coin. The company reported a 315% return on its Bitcoin investments year-to-date in 2025.
As of June 26, Metaplanet holds 12,345 BTC, with an average purchase price of $97,036. This strategic shift has propelled its stock price upward, resulting in a remarkable gain of over 661% since the end of last year.
SharpLink Gaming – SBET: An Ethereum Treasury Approach
SharpLink Gaming has built a significant Ethereum treasury. On June 24, the company announced it had increased its ETH holdings to 188,478 coins. This included a recent purchase of 12,207 ETH at an average price of $2,513.
The company also raised $27.7 million through the sale of 2.5 million shares of common stock. Additionally, SharpLink has begun staking its ETH holdings, earning 120 ETH in staking rewards as of June 20.
Following the announcement, SBET’s stock price rose from $9.40 to a high of $11.53—a 22.65% gain. However, it has since retraced to $10.08, down approximately 14.38% from its peak.
SRM Entertainment, Inc. – SRM: Betting on TRX
On June 16, SRM Entertainment announced a securities purchase agreement with a private investor involving a $100 million equity investment. The company plans to use these funds to launch a Tron (TRX) treasury strategy.
As part of the initiative, Tron founder Justin Sun was appointed as a company advisor. SRM also intends to rebrand as "Tron Inc." If all warrants are exercised, the total strategic investment could reach $210 million.
The news caused SRM’s stock to surge from a low of $1.03 on June 13 to a high of $12.80 on June 20—a gain of over 1,142%. However, the stock has since pulled back significantly and was trading at $7.96 at the time of writing, down nearly 61% from its peak.
Nano Labs – NA: A Bold BNB Strategy
Nano Labs, a Chinese blockchain infrastructure provider, announced on June 24 its intention to purchase $1 billion worth of Binance Coin (BNB). The company aims to eventually hold between 5% and 10% of BNB’s total circulating supply—valued between $4.7 billion and $9.4 billion at current prices.
The announcement caused NA’s stock to jump from a low of $10.89 to a high of $34.73 on the same day, a gain of nearly 219%. However, the stock has since retreated sharply and was trading at $11.47 at the time of writing, down over 200% from its high.
Lion Group Holding – LGHL: Diversifying with Altcoins
On June 18, Nasdaq-listed Lion Group Holding revealed plans to establish a $600 million cryptocurrency treasury. The primary asset will be Hyperliquid (HYPE), with additional allocations to Solana (SOL) and Sui (SUI).
Following the news, LGHL’s stock rose from $2.715 on June 17 to $4.84 on June 18—a gain of 78.26%. However, the stock has since declined considerably and was trading at $2.64 at the time of writing, down nearly 84% from its high.
Summary of Stock Performance
The six companies discussed above experienced significant stock price movements following their crypto treasury announcements:
- Companies focused on Bitcoin (Strategy and Metaplanet) have shown sustained upward momentum.
- SharpLink Gaming, which holds Ethereum, saw a moderate short-term gain followed by a relatively small pullback.
- Firms investing in altcoins like TRX, BNB, and HYPE experienced extreme volatility, with sharp rallies followed by substantial corrections.
Why Crypto Treasury Plans Affect Stock Prices
There is a clear short-term positive correlation between corporate crypto strategies and stock performance. Several factors contribute to this phenomenon:
- Perceived Innovation and Confidence: When a company announces a cryptocurrency treasury strategy, it is often interpreted as a forward-thinking move. Raising capital specifically to buy crypto signals strong belief in the asset’s future appreciation.
- Market Hype and Speculation: Announcements involving well-known figures or trending cryptocurrencies can trigger speculative buying. For example, SRM’s partnership with Justin Sun resulted in a short-term price surge of over 1,000%.
- Narrative-Driven Investing: In bull markets, investors are more likely to reward companies that embrace popular narratives—such as digital transformation through blockchain and crypto assets.
However, it’s important to note that not all rallies are sustainable. Strategies backed primarily by hype rather than fundamental value often lead to sharp pullbacks.
Investment Insights and Practical Recommendations
1. Understand Market Volatility
Cryptocurrency markets are highly volatile. While a rising crypto tide can lift related stocks, the reverse is also true. For example, when Bitcoin briefly fell below $103,000 due to geopolitical tensions, Metaplanet’s stock declined by 5.2% on the same day.
Investors should be aware that holding stocks with crypto treasury exposure adds an extra layer of market risk.
2. Focus on Long-Term Value
While short-term speculative opportunities exist, sustainable investing requires a focus on long-term value. Companies with clear strategies, strong fundamentals, and a genuine commitment to blockchain innovation are more likely to deliver lasting returns.
Altcoin investments, in particular, carry higher risk due to lower liquidity, less regulatory clarity, and greater price volatility. 👉 Explore more strategies for balancing risk and reward in crypto investments.
3. Diversify and Manage Risk
Investors should maintain a balanced portfolio that aligns with their risk tolerance. When companies release significant news—positive or negative—consider adjusting your stock positions accordingly.
Similarly, stay informed about technical developments and macroeconomic events that could impact cryptocurrency valuations. A disciplined approach to asset allocation can help mitigate downside risk.
Frequently Asked Questions
What is a crypto treasury?
A crypto treasury refers to a corporate strategy of holding cryptocurrencies as part of a company’s reserve assets. This can include Bitcoin, Ethereum, or other digital assets. Companies often adopt this approach to hedge against inflation, diversify assets, or gain exposure to potential crypto appreciation.
Why do companies invest in cryptocurrencies?
Companies may invest in cryptocurrencies for several reasons: potential high returns, portfolio diversification, hedging against currency devaluation, or aligning with technological innovation. Some firms also see it as a way to attract investor interest and enhance their market image.
How does crypto volatility affect stock prices?
High cryptocurrency volatility can lead to significant swings in the stock prices of companies holding digital assets. Positive crypto market trends often boost investor sentiment and drive stock prices up, while crypto market downturns can result in stock sell-offs.
Are altcoin treasury strategies riskier?
Yes, altcoins generally carry higher risk than major cryptocurrencies like Bitcoin or Ethereum. Factors such as lower liquidity, smaller market caps, less regulatory clarity, and higher susceptibility to market manipulation contribute to increased volatility and potential losses.
What should I look for in a crypto treasury company?
Look for companies with transparent reporting, a clear long-term strategy, strong corporate governance, and a balanced approach to risk management. Avoid firms that appear to be using crypto announcements purely for short-term stock price manipulation.
Can crypto treasury strategies impact market trends?
Yes. When large publicly traded companies announce significant crypto purchases, it can influence broader market sentiment and even impact crypto prices. These corporate moves are often seen as endorsements of cryptocurrency’s value and utility.
Conclusion
Crypto treasury strategies have become a significant factor influencing the stock performance of participating companies. Short-term price movements are often driven by fundraising activities, market sentiment, and speculative hype. Long-term trends will likely depend on regulatory developments, institutional adoption, and the overall maturation of the cryptocurrency market.
Investors should prioritize due diligence, focus on sustainable value, and maintain a risk-aware approach when considering exposure to crypto treasury stocks.