Latest news with #treasurystrategy
Yahoo
2 days ago
- Business
- Yahoo
Chart of the Week: Wall Street's 'Infinite Money Glitch' Moves From Bitcoin to Altcoins
Wall Street has long mastered the creative art of turning complexity into a money-printing machine. How do they do it? Financial engineering — an art of structuring debt, equity, and derivatives to squeeze out returns in ways that often defy convention. It's a playbook that made fortunes — and nearly broke the system in 2008. Now, this complex engineering of money has entered the crypto market. With Wall Street's takeover of crypto, financial engineering is fast becoming a pillar of the crypto market. It is now at the center of the latest iteration of one of the hottest trends in the space: the crypto treasury strategy. This trend is championed by Michael Saylor, whose company — MicroStrategy (MSTR), now rebranded simply as Strategy — began acquiring bitcoin as both a corporate reserve asset and a market signal. But the real innovation wasn't just buying BTC and holding it. It was how the firm financed those purchases: issuing convertible notes and equity to raise capital, then cycling that capital into buying more bitcoin. Each announcement triggered a surge in Strategy's share price, which in turn made new capital raises easier and more lucrative. Others took note. What began as a bitcoin bet turned into a blueprint for a new kind of treasury management: announce crypto treasury strategy, stock pumps, raise funds, buy tokens, watch the share price pop more, repeat. This is the new "Infinite Money Glitch," according to Animoca Brands Research. "This financial engineering approach of utilizing debt and equity issuances, such as convertible notes and stock offerings, specifically to raise funds for continuous crypto asset acquisitions creates a 'flywheel" effect," the firm said in a research note. Obviously, this money printing machine didn't stop with bitcoin. Smaller firms started to apply this to other popular altcoins, including XRP, ETH and SOL. But why altcoins? After all, the bitcoin market has matured, the cycle has been well defined, and the likes of Michael Saylor have shown that the returns serve the shareholders well while enabling firms to continue to raise funds. It's the early-stage advantage, according to Animoca's research. "Applying this 'flywheel' model to altcoins might offer a more extended runway for growth and profitability compared to bitcoin. While bitcoin's market is more mature and its price discovery has undergone several major cycles, the vast and diverse altcoin market is still, in many respects, in its nascent stages," the research noted. A quick look at the return charts shows that in the short term, this altcoin treasury strategy has paid off for the firms and their shareholders. "On the day of the [altcoin treasury] announcement, share prices saw an average increase of 161%. This upward trend persisted, with average gains of 150% one day after, 185% after seven days, and 226% after 30 days," the note said. "This immediate market response also underscores the market's willingness to invest in publicly traded 'wrappers' for altcoin exposure." Interestingly, launching these treasury strategies didn't impact the actual prices of the underlying tokens, Animoca's data shows. This perhaps makes a compelling case for investors to flock to these equity "wrappers" rather than to the actual tokens. Also, the lack of altcoin exchange-traded funds (ETFs) means that Wall Street has limited options but to buy into these strategy companies to capture the upside. For investors, these massive short-term gains are hard to ignore, and as long as there is an appetite for such financial engineering, capital will continue to flow into them. The only question is: Is this sustainable? "Should market sentiment shift or altcoin prices experience a prolonged decline, the leveraged nature of some of these strategies that could be employed carries substantial inherent risks," Animoca Brands research analysts said. "Nevertheless, the trend highlights a significant addressable market for structured products that bridge traditional finance with crypto," the report added. So for now, the "Infinite Money Glitch" is here for the in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Dogecoin Finds Another Corporate Treasury as Bit Origin Aims to Raise $500M to Build DOGE Stake
Bit Origin (BTOG), a Singapore-based crypto mining company trading on Nasdaq, is setting its sights on Dogecoin as the centerpiece of a new crypto treasury strategy. The firm said Thursday it has agreements in place to raise $400 million in equity and an additional $100 million in convertible debt from accredited investors to support the move. The company has already closed on $15 million of the debt, with a significant portion earmarked for its first round of DOGE purchases. Bit Origin is taking a page from a now-familiar corporate playbook: hoarding crypto on the balance sheet. The trend gained momentum after MicroStrategy, led by Michael Saylor, began aggressively accumulating bitcoin in 2020. Since then, other companies have joined in, expanding beyond bitcoin into ether and, in some cases, smaller coins like Dogecoin. Though once considered a joke cryptocurrency, Dogecoin now plays a larger role in crypto markets, buoyed by an active community and celebrity attention. Treasury strategies involving DOGE remain rare, making Bit Origin's pivot notable. The firm, which has been publicly traded since 2019, has seen its stock price crater nearly 100% since listing. It's down 58% this year with a market cap of about $20 million. But Thursday's announcement helped reverse some of those losses, with shares jumping 28% to $0.52. For a company with a shaky track record and limited public visibility, Bit Origin's Dogecoin strategy is a high-stakes gamble on the staying power of memecoins—and crypto treasuries more broadly—as long-term financial tools. DOGE is up 3.6% over the past 24 hours, trading at $0.21.
Yahoo
6 days ago
- Business
- Yahoo
GameSquare ETH Strategy Quickens With $70 Million Offering
By Exec Edge Editorial Staff GameSquare Holdings (NASDAQ: GAME) said it completed a $70 million public offering, fueling a major expansion into decentralized finance with the launch of a $100 million Ethereum-based treasury strategy. The capital raise significantly exceeded earlier expectations and provides the financial runway for GameSquare to invest in Ethereum (ETH) over time through a staged, risk-managed approach, it said. The strategy is designed to generate 8–14% annual yields, far outpacing traditional ETH staking returns of 3–4%. The move positions GameSquare, a media, entertainment and technology company, among the first publicly traded companies to deploy a large-scale, on-chain corporate treasury—a signal of growing institutional confidence in decentralized finance. 'This raise marks a pivotal milestone for GameSquare,' said Justin Kenna, CEO of GameSquare. 'It enables us to move with speed and scale to continue to build what we believe is one of the most ambitious Ethereum treasury strategies in the public markets.' GameSquare is partnering with crypto-native asset manager Dialectic, using its Medici platform to allocate capital across multiple Ethereum-based yield opportunities—ranging from staking and lending to liquidity provisioning and token incentives, it said. Dialectic's platform incorporates machine learning, real-time optimization, and layered risk controls. GameSquare's board has authorized the ETH investment strategy to scale over time, with flexible pacing based on market conditions and risk exposure, it said. Management sees the initiative as a way to diversify cash holdings, enhance financial returns, and strengthen the company's position in digital innovation. READ MORE GameSquare Unveils $100M Ethereum Strategy, Raises $8M in Public Offering Register for our weekly newsletter Contact: Exec Edge Editor@ Click to follow us on LinkedIn Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
