The logos of Bitcoin, Ethereum, and Tether outdoors a cryptocurrency trade in Istanbul, Turkey, on Wednesday, Nov. 6, 2024.
David Lombeida | Bloomberg | Getty Pictures
The crypto market’s bullishness could also be tipping into speculative frenzy, if the most recent MicroStrategy-style copycat is any indication.
On Monday, a little-known Canadian vape firm noticed its inventory surge on plans to enter the crypto treasury sport – however this time with Binance Coin (BNB), the fourth largest cryptocurrency by market cap, excluding the dollar-pegged stablecoin Tether (USDT), in accordance with CoinGecko.
Shares of CEA Industries, which trades on the Nasdaq below the ticker VAPE, rocketed greater than 800% at one level after the corporate introduced its plans. CEA, together with funding agency 10X Capital and YZi Labs, stated it will provide a $500 million non-public placement to lift proceeds to purchase Binance Coin for its company treasury. Shares ended the session up almost 550%, giving the corporate a market cap of about $48 million.
Given the extra crypto-friendly regulatory surroundings this 12 months, extra public firms have adopted the MicroStrategy playbook of utilizing debt financing and fairness gross sales to purchase bitcoin to carry on their stability sheet to attempt to enhance shareholder returns, pushing bitcoin to new information.
Now, with the S&P 500 buying and selling at new information, the resurgence of meme mania and a pro-crypto White Home supporting the crypto trade, traders are wanting additional out on the chance spectrum of crypto hoping for larger good points.
In latest months, traders have rotated out of bitcoin and into ether, which led to a burst of firms searching for an identical treasury technique round ether. SharpLink Gaming, whose board is chaired by Ethereum co-founder Joe Lubin, was one of many first to make the transfer. Different firms like DeFi Growth Corp, renamed from Janover, are making related strikes round Solana.
