Public companies are increasingly adding altcoins like Ether (ETH), Solana’s SOL, and XRP to their treasury strategies, according to a new report from Animoca Brands Research.
Key Takeaways:
Public companies are increasingly diversifying their crypto treasuries by adding altcoins. This trend uses financial instruments to grow crypto exposure without direct spot market purchases. SharpLink Gaming recently became the largest corporate Ethereum holder.The move follows a trend set by high-profile Bitcoin investors, aiming to diversify crypto holdings beyond just BTC.
The report, titled Altcoin Strategic Reserves, said that firms are using financial tools such as convertible debt and equity issuance to build exposure to cryptocurrencies.
This approach allows companies to gradually increase their crypto holdings per share, tapping into investor demand for altcoin assets without direct spot market exposure.
Strategy Leads the Way with 600,000+ Bitcoin Reserve
MicroStrategy popularized this model by holding over 600,000 bitcoins as a hedge against inflation and currency devaluation.
Now, companies are broadening their strategies to include tokens like BNB, TRX, HYPE, and FET.
These firms often serve as rare gateways for investors seeking altcoin exposure but lacking easy access through traditional financial products like ETFs.
Market reaction has been strong, with companies revealing altcoin holdings experiencing average stock price jumps of 150% in one day, 185% in a week, and 226% over a month, the report notes.
However, altcoins come with heightened risks due to their volatility, lower liquidity, and experimental technology compared to Bitcoin.
Yet, the report suggests that if tokens support staking or network functions, this could improve liquidity and security in their ecosystems, potentially accelerating wider crypto adoption.
On Friday, SharpLink Gaming increased its Ethereum holdings by purchasing another 32,892 ETH worth $115 million, bringing its total to 144,501 ETH valued at $515 million over nine days.
The buying spree coincides with Ethereum’s rise to six-month highs above $3,400.
SharpLink, a Minneapolis-based marketing company, is now the world’s largest corporate holder of Ethereum, surpassing the Ethereum Foundation with around 353,000 ETH valued at over $1.2 billion.
The company’s Ethereum accumulation began in late May after a $425 million private placement led by Consensys.
SharpLink’s stock has soared 29% during this period and has increased about sixfold since shifting to an ETH treasury strategy.
Nearly all of SharpLink’s Ethereum is staked, earning rewards while supporting Ethereum’s network security through the proof-of-stake mechanism.
More Public Companies Diversify into Crypto
Following the model pioneered by Michael Saylor’s Strategy, more public companies are diversifying into crypto holdings that include BTC, ETH, SOL, and XRP.
Just recently, BIT Mining announced plans to raise between $200 million and $300 million to build a Solana (SOL) treasury as part of a broader expansion into the fast-growing blockchain ecosystem.
Last week, DeFi Development Corp. revealed that it has acquired $2.7 million worth of Solana as part of its aggressive crypto treasury strategy.
Likewise, Canadian digital asset firm Sol Strategies, already trading on the Canadian Securities Exchange, holds over 420,000 SOL tokens, positioning itself as a significant institutional player in Solana’s ecosystem.
Last month, the firm also filed to list its common shares on the Nasdaq Capital Market under the ticker “STKE” as it ramps up its U.S. expansion.
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