Bitcoin has fallen out of favor! Wall Street listed companies are buying TRUMP, HYPE, LTC, brewing a new season of altcoins.

In the cryptocurrency market, Bitcoin (BTC) has long been regarded as "digital gold" and is the preferred choice for institutional investors. However, a new trend is quietly emerging on Wall Street: publicly traded companies are starting to buy large amounts of altcoins beyond Bitcoin, such as President Trump's meme coin $TRUMP, HYPE Token, and Litecoin (LTC), in an attempt to boost their stock prices by hoarding these digital currencies. Does this mean that Bitcoin is losing favor, and a new season of altcoins is about to arrive?

From Bitcoin to altcoins: The new favorite of listed companies

This year, purchasing Bitcoin through the issuance of stocks or bonds has become a global trend, as major companies are trying to emulate billionaire Michael Saylor's strategy to accumulate digital currency. However, as more and more businesses hold Bitcoin, publicly traded companies and new special purpose acquisition companies are now targeting other Tokens, attempting to distinguish themselves from the hundreds of companies that own Bitcoin.

Toncoin (TON): Brittany Kaiser, a former executive at Cambridge Analytica, is in discussions with Canadian investment group RSV Capital for a deal to raise $200 million in equity through a public shell company to acquire Toncoin at a price below its current trading value. Kaiser stated that since TON is the exclusive blockchain of Telegram, which has over 1 billion monthly active users, the opportunity for demand growth is unparalleled.

Avalanche (AVAX): The blockchain platform Avalanche is also researching similar trading solutions, which involve selling some tokens to a listed shell company. This shell company will hold and stake AVAX tokens to earn returns in order to attract investors.

TRUMP Meme Coin: The logistics management company Freight Technologies recently raised $20 million through convertible bonds to purchase the President's official currency $TRUMP. CEO Javier Selgas stated that purchasing this currency would help "diversify our encryption funding while drawing attention to trade policies."

Hyperliquid (HYPE): The oncology company Sonnet BioTherapeutics has reached a special purpose acquisition agreement worth $888 million this month to acquire HYPE, with support from a company backed by former Barclays CEO Bob Diamond. HYPE is the token of the Hyperliquid blockchain. Sonnet's stock price surged 200% during this transaction but subsequently declined.

Litecoin (LTC): Charlie Lee, co-founder of Litecoin, will invest $100 million into cancer treatment company MEI Pharma, enabling the company to purchase Litecoin and become "the first and only publicly traded holder of Litecoin." Last week, after the announcement of Litecoin trading, MEI Pharma's stock price surged by 78%.

Ethereum (ETH): Consensys Capital co-founder Andrew Keys has initiated a special purpose acquisition aimed at acquiring Ethereum, with an investment of approximately 645 million dollars in Ethereum, along with an 800 million dollar investment from well-known institutions such as Pantera Capital and Blockchain.

Motivations and Risks Behind the Altcoin Craze

Bitcoin's performance has outperformed other tokens, rising 77% over the past year, while Ethereum rose 6% and Litecoin rose 52%. This has led some companies to start paying attention to other Crypto Assets. These companies hope to achieve a greater boost in stock prices by holding these relatively smaller, more volatile alts.

However, many people are skeptical about the benefits of these small tokens. Eric Benoist, a technology and data research expert at Natixis CIB, stated that buying currencies other than Bitcoin and Ethereum is an "extremely speculative" move, adding that for struggling companies to buy tokens is not a long-term business plan. "This won't save them for a long time. In the end, their value depends solely on the crypto assets listed on the balance sheet."

Geoff Kendrick, the Global Head of Digital Assets Research at Standard Chartered Bank, stated that the market for companies buying Bitcoin has become saturated, and the act of purchasing other Tokens "seems more like a flash in the pan." He added that if prices collapse, "shareholders or bondholders will be affected."

Copying and Challenges of the 'Strategy'

Represented by the strategy led by Seiler, the company's stock trading price is almost double the value of the Bitcoin it holds. The value of companies holding crypto assets is usually higher than the tokens they own, due to the use of debt to finance purchases favorable to shareholders, as well as speculative momentum. Crypto asset purchasing tools have also become a means for investors holding a large number of tokens to store their tokens, with the aim of realizing greater value.

However, supporters of Bitcoin believe that its appeal largely lies in its scarcity. According to its code rules, the total amount of Bitcoin that can be mined is only 21 million coins. However, very few other Tokens have such specific limitations, and their supply can still be increased, which has led some commentators to question the sustainability of these strategies.

Some industry insiders are skeptical about the prospects of most companies of this kind, whether they are buying Bitcoin or other Tokens. Crypto venture firm Breed recently stated that it expects "more companies worldwide to adopt this strategy, expanding into more assets and using greater leverage to pursue success." "Most will fail," the report added. "In the end, only a few companies will be able to sustain a lasting (stock price) premium."

Conclusion:

Publicly traded companies on Wall Street have been buying up altcoins in large quantities, undoubtedly bringing new hotspots and capital flows to the Crypto Assets market. The brewing of this "alts season" reflects companies' attempts to seek market value boosts and differentiation strategies. However, compared to the scarcity and broad consensus of Bitcoin, the value foundation of many altcoins remains relatively weak, and their price volatility is also higher. Investors and companies must remain vigilant while chasing this wave of enthusiasm, thoroughly assess risks, and avoid blindly following the trend to prevent ultimately becoming victims of a bubble burst.