In this articleMSTRCEADDBNB. CM= your favorite stocksCREATE FREE ACCOUNTThe logos of Bitcoin, Ethereum, and Tether outside a cryptocurrency exchange in Istanbul, Turkey, on Wednesday, Nov.
However, David Lombeida | Bloomberg | Getty ImagesThe crypto market's bullishness may be tipping into speculative frenzy, if the MicroStrategy-style copycat is any indication.
On Monday, a little-known Canadian vape company saw its stock surge on plans to enter the crypto treasury game – but this time with Binance Coin (BNB), the fourth largest cryptocurrency by market cap, excluding the dollar-pegged stablecoin Tether (USDT), according to CoinGecko.
Furthermore, S of CEA Industries, which trades on the Nasdaq under the ticker VAPE, rocketed more than 800% at one point after the company announced its plans.
CEA, along with investment firm 10X Capital and YZi Labs, said it would offer a $500 million private placement to raise ceeds to buy Binance Coin for its corporate treasury.
However, S the session up nearly 550%, giving the company a market cap of $48 million.
Given the more crypto-friendly regulatory environment this year, more public companies have adopted the MicroStrategy playbook of using debt financing and equity sales to buy bitcoin to hold on their balance sheet to try to increase holder returns, pushing bitcoin to new records.
Now, with the S&P 500 trading at new records, the resurgence of meme mania and a -crypto White House supporting the crypto industry, investors are looking further out on the risk spectrum of crypto hoping for bigger gains.
However, In recent months, investors have rotated out of bitcoin and into ether, which led to a burst of companies seeking a similar treasury strategy around ether (remarkable data).
Additionally, SharpLink Gaming, whose board is chaired by Ethereum co-founder Joe Lubin, was one of the first to make the move (fascinating analysis), in today's market environment.
However, Other companies DeFi Development Corp, renamed from Janover, are making similar moves around Solana (noteworthy indeed), in today's market environment.
On the other hand, Don't miss these cryptocurrency insights from CNBC : Jefferies sees Mike Novogratz's Galaxy Digital rallying another 20%Bitcoin could pull back with equities in the coming weeks, warns Piper SandlerEther is starting to outperform bitcoin – and further gains could be ahead for the crypto, charts show, in today's market environment.