Buy coins, the new wealth password of US-listed companies.

Author: Deep Tide TechFlow

On May 27, an obscure small stock stirred up huge waves in the Nasdaq trading hall.

SharpLink Gaming (SBET), a small gambling company with a market capitalization of only $10 million, announced that it has acquired approximately 163,000 Ethereum (ETH) through a $425 million private equity investment.

As soon as the news broke, SharpLink's stock price skyrocketed, with an increase of over 500% at one point.

Buying coins may be becoming the new wealth code for publicly listed companies in the US stock market to drive up stock prices.

The origin of the story naturally lies with MicroStrategy (now renamed as Strategy, stock code MSTR), the company that first ignited the flames of battle, which boldly bet on Bitcoin as early as 2020.

In five years, it has transformed from an ordinary tech company into a "pioneer of Bitcoin investment." In 2020, MicroStrategy's stock price was only a little over $10; by 2025, the stock had soared to $370, with a market capitalization exceeding $100 billion.

Buying Bitcoin not only inflated MicroStrategy's balance sheet, but also made it a darling of the capital markets.

In 2025, this craze will become even more intense.

From tech companies to retail giants, and even small betting firms, U.S. listed companies are igniting a new engine of valuation with cryptocurrency.

What are the secrets in the wealth code of increasing market value through buying coins?

MicroStrategy, The Textbook on Coin-Stock Fusion Gameplay

It all started with MicroStrategy.

In 2020, this enterprise software company was the first to initiate the trend of buying cryptocurrencies on the US stock market. CEO Michael Saylor once stated that Bitcoin is "a more reliable store of value than the US dollar."

The recharge belief is wonderful, but what really makes this company stand out is its play in the capital market.

MicroStrategy's approach can be summarized as a combination of "convertible bonds + Bitcoin:"

First, the company raises funds by issuing low-interest convertible bonds.

Since 2020, MicroStrategy has issued such bonds multiple times, with interest rates as low as 0%, far below the market average. For example, in November 2024, it issued $2.6 billion in convertible bonds, with financing costs nearly zero.

These bonds allow investors to convert them into company stock at a fixed price in the future, equivalent to giving investors a call option, while enabling the company to obtain cash at a very low cost.

Secondly, MicroStrategy will invest all the raised funds into Bitcoin. Through multiple rounds of financing, it continues to increase its Bitcoin holdings, making Bitcoin a core component of the company's balance sheet.

Finally, MicroStrategy initiated a "flywheel effect" taking advantage of the premium effect brought by the rise in Bitcoin prices.

When the price of Bitcoin rose from $10,000 in 2020 to $100,000 in 2025, the value of the company's assets increased significantly, attracting more investors to buy the stock. The rise in stock prices has allowed MicroStrategy to reissue bonds or shares at higher valuations to raise more capital and continue to buy Bitcoin, creating a self-reinforcing capital cycle.

The core of this model lies in the combination of low-cost financing and high-return assets. By borrowing money through convertible bonds at nearly zero cost, one can buy Bitcoin, which has high volatility but is bullish in the long run, and then leverage the market's enthusiasm for cryptocurrencies to amplify valuations.

This approach not only changed MicroStrategy's asset structure but also provided a textbook example for other U.S. companies.

SharpLink, the meaning of the shell is not in wine

SharpLink Gaming (SBET) has optimized the above gameplay, using Ethereum (ETH) as the asset instead of Bitcoin.

But behind this, there is a clever combination of the power of the crypto world and the capital markets.

Its gameplay can also be summarized as "backdoor listing", where the core lies in utilizing the "shell" of a listed company and the crypto narrative to quickly amplify valuation bubbles.

SharpLink was originally a small company struggling on the brink of being delisted from NASDAQ, with its stock price dropping below $1 and shareholders' equity of less than $2.5 million, facing immense compliance pressure.

But it has a killer feature - the listing status on Nasdaq.

This "shell" has attracted the attention of giants in the crypto world: ConsenSys, led by Ethereum co-founder Joe Lubin.

In May 2025, ConsenSys, in collaboration with several venture capital firms in the crypto space (such as ParaFi Capital and Pantera Capital), led the acquisition of SharpLink through a $425 million PIPE (private equity financing).

They issued 69.1 million new shares (at $6.15 per share), quickly taking control of over 90% of SharpLink, avoiding the cumbersome processes of an IPO or SPAC. Joe Lubin was appointed as the chairman of the board, and ConsenSys clearly stated that it will collaborate with SharpLink to explore the "Ethereum treasury strategy."

Some say this is the ETH version of MicroStrategy, but in reality, the gameplay is more sophisticated.

The real purpose of this transaction is not to improve the gambling business of SharpLink, but rather for it to become a bridgehead for the cryptocurrency sector to enter the capital market.

ConsenSys plans to purchase approximately 163,000 ETH with this $425 million, packaged as an "Ethereum version of MicroStrategy," and claims that ETH is a "digital reserve asset."

The capital market is about "story premium"; this narrative not only attracts speculative funds but also provides an "open ETH proxy" for institutional investors who cannot hold ETH directly.

Buying coins is just the first step; the real "magic" of SharpLink lies in the flywheel effect. Its operation can be broken down into a three-step cycle:

The first step is low-cost fundraising.

SharpLink raised $425 million through PIPE at $6.15 per share, which is less costly than an IPO or SPAC without the need for a cumbersome roadshow and regulatory process.

In the second step, market enthusiasm drives up stock prices.

Investors are ignited by the story of "Ethereum's version of MicroStrategy," and the stock price skyrockets. The market's enthusiasm for SharpLink shares far exceeds its asset value, with investors willing to pay a price much higher than its net ETH holdings, resulting in a rapid expansion of SharpLink's market capitalization.

SharpLink also plans to stake these ETH tokens, locking them in the Ethereum network, and can earn an annual yield of 3%-5%.

Step three, circular refinancing. By issuing shares again at a higher stock price, SharpLink can theoretically raise more funds, buy more ETH, and repeat the cycle, with its valuation snowballing larger and larger.

Behind this "capital magic" lies the shadow of a bubble.

SharpLink's core business - betting marketing - is almost ignored, and the $425 million ETH investment plan is completely disconnected from its fundamentals. Its stock price has skyrocketed, driven more by speculative funds and crypto narratives.

The truth is that capital in the cryptocurrency space can also quickly inflate valuation bubbles by using the "shell + buy coins" model with some small and medium-sized listed companies.

The intentions of the drunken old man are not focused on the wine; it is naturally good if the business of the listed company is related, but it is actually not important if it is not.

Imitation is not infallible

The crypto buying strategy seems to be the "wealth code" of U.S. listed companies, but it is not a panacea.

On the road of imitation, it is crowded with latecomers.

On May 28, GameStop, the video game retail giant that gained fame for its retail investors clashing with Wall Street, announced that it would purchase 4,710 Bitcoins for $512.6 million in an attempt to replicate MicroStrategy's success. However, the market reacted lukewarmly: after the announcement, GameStop's stock price fell by 10.9%, and investors were not convinced.

On May 15, Addentax Group Corp (stock code ATXG, Chinese name 盈喜集团), a Chinese textile and apparel company, announced plans to purchase 8,000 bitcoins and Trump's $TRUMP coin through the issuance of ordinary shares. Based on the current bitcoin price of $108,000, this purchase cost will exceed $800 million.

However, in contrast, the company's total stock market value is only about 4.5 million dollars, which means its theoretical coin purchase cost is more than 100 times the company's market value.

Almost at the same time, another Chinese company listed on the US stock market, Jiuzi Holdings (stock code JZXN), also joined this wave of buying coins.

The company announced plans to purchase 1,000 bitcoins in the next year, at a cost of over 100 million dollars.

Public information shows that Jiuzhi Holdings is a Chinese company focused on the retail of new energy vehicles, established in 2019. The company's retail stores are primarily located in China's third and fourth-tier cities.

The total market capitalization of this company on Nasdaq is only about 50 million dollars.

The stock price is indeed rising, but the alignment between the company's market value and the cost of purchasing coins is key.

For more latecomers, if the price of Bitcoin falls and they really buy in, their balance sheets will face immense pressure.

Buying strategies for cryptocurrencies are not a universal wealth code. Lack of fundamental support and excessive leveraged bets on buying coins may simply be a risky path to a bubble burst.

Another way to stand out

Despite the numerous risks, the buying frenzy of cryptocurrencies may become the new normal.

In 2025, global inflationary pressures and expectations of a depreciating dollar continue to persist, and more and more companies are beginning to view Bitcoin and Ethereum as "inflation-hedging assets." Japan's Metaplanet has increased its market value through a Bitcoin treasury strategy, while more U.S. listed companies are following in MicroStrategy's footsteps at an accelerating pace.

Under the big trend, cryptocurrencies are increasingly making their presence felt in the global political and economic arenas.

Is this a kind of "out of the circle" that people in the crypto community often mention?

A comprehensive observation of the current trends shows that there are mainly two paths for cryptocurrencies to break into the mainstream: the rise of stablecoins and the inclusion of crypto reserves in corporate balance sheets.

On the surface, stablecoins provide a stable medium for payments, savings, and remittances in the cryptocurrency market, reducing volatility and promoting the widespread use of cryptocurrencies. However, their essence is an extension of US dollar hegemony.

Taking USDC as an example, its issuer Circle has close ties with the U.S. government and holds a large amount of U.S. Treasury bonds as reserve assets. This not only strengthens the dollar's status as a global reserve currency but also further penetrates the influence of the U.S. financial system into the global crypto market through the circulation of stablecoins.

Another way to break out is for publicly listed companies to buy coins, as mentioned above.

Companies that buy cryptocurrencies attract speculative funds through crypto narratives, driving up stock prices. However, apart from a few leading companies, it remains a mystery how much the fundamentals of their core businesses can improve, apart from increasing market valuations for later imitators.

Whether stablecoins or crypto assets are added to the balance sheets of listed companies, crypto assets appear more like a tool to continue or strengthen the existing financial landscape.

Whether to cut the leeks or pursue financial innovation, this is more like looking at two sides of a coin, depending on which side of the table you are sitting on.