"Buying Coins" has become a cheap and quick method of market value manipulation in the stock market.
The US stock "copycat season" is surging, with listed companies' main businesses becoming a backdrop, and digital assets turning into a new market value engine.
But the problem is becoming increasingly sharp: Will the market continue to buy into this valuation game in the name of buying coins?
Valuation Logic: How Does Buying Coins Affect Corporate Value?
"Buying coins" seems like a valuation offset experiment woven from emotions, liquidity, and narrative.
In the traditional valuation framework, corporate market value stems from a comprehensive pricing of core variables such as profitability, asset-liability structure, growth potential, and free cash flow. However, in this "buying coins wave", companies' "financial asset allocation" of holding crypto assets has leveraged market revaluation.
When enterprises incorporate Bitcoin or other mainstream crypto assets into their balance sheets, the market's valuation adds a premium multiple based on crypto asset price elasticity and trading expectations. In other words, corporate market value now comes not just from value creation, but also from a leveraged amplification of the possibility of "coin price increase".
But this structure almost places "liquidity narrative" above corporate operations, transforming financial allocation into the main axis of capital operations.
Short-term Boost, Long-term Still Uncertain
Undeniably, entering crypto does have the ability to stimulate stock prices in the short term. Take Cango, a car trading service provider, as an example. After announcing entry into Bitcoin mining in November 2023 and investing $400 million in 50 EH/s computing power, its stock price soared 280%. Similarly, many companies with mediocre main business performance, or even deep financial difficulties, are trying to seek re-evaluation in the capital market through the "buying coins" narrative.
We have compiled stock price data for listed companies achieving "coin-stock linkage" through crypto asset purchases:
From market performance, the phenomenon of "buying coins equals surge" has played out multiple times. As long as the "crypto assets" concept is mentioned, short-term funds quickly pour in. However, after the short-term spike, many "coin-holding companies" face stock price corrections. Without continuous coin purchasing actions or other positive news to stimulate, the gains are hard to maintain.
Therefore, while the "buying coins" strategy can spark market enthusiasm in the short term, whether it can be transformed into long-term corporate competitiveness and sustained growth remains highly uncertain. The market also finds it difficult to truly recognize those followers who seek attention with just one or two coin purchases or vague "coin holding plans".
Are Speculators Starting to Sell?
The story of "buying coins to boost valuation" continues to ferment, but some core players seem to be quietly taking profits.
MicroStrategy, the proposer of this "infinite growth" theory, has its internal executives continuously selling their stocks. According to SecForm4.Com data, MicroStrategy's internal personnel have entered a concentrated selling period since June 2023. Protos reports that in the past 90 days alone, executives have sold stocks totaling $40 million, with selling instances 10 times more than buying.
Image source: secform4.com
Upexi, the "SOL version of MicroStrategy", is also facing pressure. The company previously raised $100 million to establish a SOL treasury. However, Upexi plummeted 61.2% intraday yesterday, as investors registered to sell 43.85 million shares, equivalent to its total circulating shares in early April.
On the other side, stablecoin issuer Circle saw its stock price once soar to near $300 after listing. However, Ark Invest, which strongly supported it before its listing, has been continuously reducing its holdings. It is reported that Ark Invest has sold Circle stocks four times consecutively, reducing over 36% of its position.
When "buying coins" becomes a packaging, a market value tool, or even a narrative shell to avoid fundamental questioning, it is destined not to be a "pass key" for all enterprises. Today's market is willing to buy into "financial allocation", but tomorrow's market may return to real inquiries about growth and profitability.
The secondary market's buying may not be an endorsement; more likely, it's just a rotation of short-term speculative chips.
