A certain number of public companies can be about to build altcoin treasures to try to pump their share of shares.
These companies try to reproduce the model mastered by Michael Saylor’s strategy (MSTR) which has now accumulated 2.9% of all Bitcoin (BTC) which will ever exist. Since he embarked on his BTC cash strategy in 2020, the MSTR share price has increased by more than 3,000%.
Bitcoin Treasury’s strategy has been copied by a series of different companies and in recent months, there have been several doing something similar with Ether.
However, the possibility that this model would be used with other altcoins (a general term for any cryptocurrency which is not bitcoin) was encountered by certain commentators, the Financial Times reported on Friday.
The Avalanche blockchain platform explores the possibility of selling a lot of its Avox token to a listed brilliance company, which it would then use to win a return and attract an investor base, according to the report, citing people familiar with the problem.
The Canadian Investment Group RSV Capital seeks to raise $ 200 million in equity in the help of a bus company that will be deployed to buy tons, according to the FT.
This method seems to have brought short -term gains where it was tried. Charlie Lee, co-founder of Litecoin, invested $ 100 million in Mei Pharma (MEIP) for the company to buy the LTC on July 18. Meip shares jumped 17% after the announcement before falling back and is around 4.9% higher last week, during writing.
However, such a business plan will not produce any long -term advantage, according to Eric Benoist, specialist in technology research and data at Natixis CIB, who described it as “extremely speculative”.
“It won’t save them very long,” he said. “At the end of the day, they are struggling [crypto] They have the balance sheet and that’s it. “”
Geoff Kendrick, a global manager of digital assets of Standard Charterd, described a movement in the little Altcoin treasure vouchers as a “flash in the pan”.
He added that if the token prices collapsed, the companies “would have pain in the holder of the shares or the bonds”.
