On Wall Street in July 2025, a bizarre capital drama is unfolding. The spotlight is not on giants like Apple or Google, but on almost forgotten corners of the exchange list. Here, a group of small companies with precarious core businesses and negligible market capitalization seem to have suddenly heard a divine revelation, unanimously declaring that they will stake the company's fate on digital assets such as Bit and XRP.
At the core of this wave is a revered "Saylor Effect". MicroStrategy founder Michael Saylor has long demonstrated the magic of this model: borrowing low-cost funds as a corporate entity to buy Bit, using market enthusiasm for the crypto narrative to drive up stock prices, and then repeatedly using overvalued stocks as collateral. However, Saylor's bet still has a profitable software business as ballast. The new players rushing to the table now have almost no cards in hand. Is their transformation a financial innovation leading to the future, or an elaborately packaged fraud?
DDC Enterprise (DDC): Poison Pill Protocol
This company, claiming to be a "global Asian food platform", announced raising $528 million to establish a Bit treasury under the leadership of its founder, former HSBC bank analyst Zhu Jiaying, while its market value was merely in the millions. The deal attracted investors including the famous hedge fund Anson Funds. However, the devil is in the details submitted to the SEC. The protocol contains two fatal clauses: a "put option" allowing investors to force the company to repurchase shares if DDC's market value falls below $500 million, and another clause more directly stating that DDC will use a Bit wallet as collateral, with investors gaining "absolute and complete control" of the wallet, including private keys, in case of default. This is no longer an investment, but a precisely disguised high-risk mortgage loan, with almost all risks transferred to the original shareholders.
Sequans Communications (SQNS): Surrenderer
This French semiconductor veteran struggling in the IoT field for 20 years, with declining revenue and continuous losses, had long received non-compliance notices from the exchange. In July 2025, this company with a market value of only $49 million announced completing a strategic investment of $384 million and using "all net proceeds" to purchase Bit. CEO Georges Karam, holding a doctorate in communication theory, made the clearest judgment with his actions: the risk-reward of betting on Bit is far higher than investing in his own engineers and product lines. This is not an extension of the business, but an abandonment of it, a bold bet replacing technological innovation with financial engineering.
BioSig Technologies (BSGM): Resurrection of the "Shell"
This medical device company's financial statements are a disaster, with annual revenue of only $26,000 and losses of $9.79 million, nearly bankrupt. Yet, this shell on the brink of bankruptcy achieved a reverse merger through a "merger" with the private crypto startup Streamex. Control of the company was transferred, and a grand plan was immediately launched: raising $1.1 billion to start a "gold-backed treasury management strategy" and tokenize a "commodity market worth $142 trillion". The market's response was immediate and irrational, with stock price soaring having nothing to do with the almost untouched medical device. BioSig's entity is dead, but its "shell" has gained immortality in the crypto narrative.
Thumzup Media (TZUP): Story is Everything
This advertising technology platform's total revenue for the entire 2024 was a stunning $741, with losses exceeding $5.8 million in the same period. Under any normal business logic, this could not be called a company. However, it successfully raised $6.5 million in July and claimed the funds would be used to "explore opportunities to accumulate other cryptocurrencies". The significance of this financing is self-evident: the funds are not for developing an almost non-existent business, but to execute its true business plan - crypto speculation. Its advertising platform exists merely as a thin veil required to maintain its listed company status.
Aditxt (ADTX): Absurd Logic
This biotechnology company with a market value of only $3.8 million and depleted cash flow launched a grand plan called "bitXbio", claiming to "accelerate biotechnology commercialization" by establishing a Bit reserve. This logic is full of contradictions. Biotech R&D needs long-term, stable, predictable funding, while Bit is known for short-term, violent fluctuations. Using an extremely unstable asset to support a business that desperately needs stability is financially absurd. Clearly, "bitXbio" is not a serious research funding proposal, but a gimmick designed to cater to market taste - "Bit-enabled biotechnology".
Webus International (WETO): Narrative Arbitrage
This transportation service provider announced plans to establish an XRP reserve and signed a credit agreement of up to $100 million with an entity called "Ripple Strategy Holdings". The name is too clever, making it hard not to associate with XRP's creator, Ripple Labs. However, a thorough review of public information shows no clear connection between them. This deliberately created ambiguity is a sophisticated "narrative arbitrage". By publicly accepting funding from this entity, Webus cleverly cloaks itself in an aura of association with industry giants, enough to raise investor expectations in an information-asymmetric market.
Conclusion: Whose Feast?
Placing these cases side by side, a clear picture emerges: a group of listed companies in operational difficulties, under the inspiration of successful narratives represented by MicroStrategy, use complex and often predatory financial instruments to obtain funds from a new capital ecosystem composed of mature institutions and mysterious entities, completely betting the company's future on high-volatility crypto assets.
This phenomenon blurs the line between corporate treasury management and pure speculation, posing a serious challenge to regulatory authorities. When a company's stock price is completely disconnected from its operational value, becoming merely a reflection of market sentiment and Bit prices, these companies mutate into "zombie enterprises". Their existence is no longer about creating products or services, but about serving as a high-leverage financial derivative.
Are we witnessing the dawn of a bold financial architecture driven by digital assets and providing blood for innovation, or watching the construction of a house of cards rooted in despair and fueled by speculation? History has not yet provided an answer, but when the feast's music stops, we will finally see who is the diner and who is the dish on the menu.
