A growing number of small Nasdaq-listed firms have begun announcing bold crypto investment plans. These companies, often valued under $100 million, claim they intend to raise massive funds to buy altcoins like XRP and Solana. But industry experts see red flags.
Matthew Sigel, VanEck’s Head of Digital Assets, pointed out this sudden trend. He believes many of these efforts are likely pump-and-dump tactics designed to inflate share prices. Companies with tiny market values and no clear anchor investors tend to show these patterns.
One example is Trident Digital Tech, based in Singapore. The company announced plans to raise $500 million to build an XRP treasury. Its stock traded below $0.40 when the announcement came. The market cap stood around $16 million.
Crypto Hype spurs unrealistic Treasury plans
Yet the goal of raising half a billion dollars seemed far out of reach. Other companies have made similar moves. Classover Holdings, an education firm, also announced a $500 million plan to acquire Solana. Its stock trades below $4, and its market value is less than $100 million.
Then there’s Webus International, a firm involved in both cars and hospitality. It filed plans to form a $300 million XRP treasury while its market cap remains under $100 million. These announcements flood the market during a time of rising crypto enthusiasm.
They follow in the footsteps of more credible strategies, like that of Michael Saylor’s company, which used billions to buy Bitcoin. But the new wave of announcements appears less grounded in reality. DeFi Development Corp. adds a twist.
Solana treasury plans spark investor caution
It claimed to have entered a deal to sell up to $5 billion in shares. The goal: build a Solana treasury. Its stock price has surged, but skepticism surrounds its ability to raise that much capital. The firm had a market cap of just $7 million at the end of March. Now it stands at $379 million, according to Yahoo Finance.
Sigel has remained vocal throughout these developments. He continues to point out unusual patterns. Sudden token buying plans, big numbers, and small market caps rarely add up. This new trend may reflect the bullish sentiment around crypto, but analysts warn that it could expose retail investors to significant risk.
The market will continue to watch these developments closely. Whether these companies follow through or fade away could shape future rules around crypto treasury strategies in public markets.
