Cryptocurrency stocks showed mixed performance in U.S. trading on Monday, as investors expressed concerns over the latest purchasing behavior of cryptocurrency treasury companies, while still reacting positively to new cryptocurrency transformations and acquisitions.
As Bitcoin (BTC) prices fell below $113,000—marking the first time in nearly two weeks that it dropped below this level—and with the excitement from the Federal Reserve's interest rate cut on Wednesday fading, stocks related to the cryptocurrency industry declined in early trading on Monday in the U.S. and Canadian markets.
The cryptocurrency treasury companies that buy and hold cryptocurrencies largely dominated the declines on Monday.
Medical device company Helius Medical Technologies (HSDT) saw the largest drop among cryptocurrency companies on Monday, closing down 33.6% after announcing its first purchase of Solana (SOL). It rose 8.6% in after-hours trading to $17.40.
The company spent over $175.6 million to acquire 760,190 SOL at an average cost of $231. Solana fell 7% to $218 on the day, bringing Helius's holdings value below $166 million.
Meanwhile, the stock price of CEA Industries (BNC), a vaping company transformed into a BNB treasury supported by Zhao Changpeng, plummeted 19.5% after the company announced a $500 million stock deal on Sunday, stating it would lead to volatility.
Tom Lee's BitMine Immersion Technologies (BMNR) also exacerbated the day's declines, closing down 10% after announcing an $11 billion purchase of Ethereum (ETH). Bitcoin purchasing giant Strategy Inc. (MSTR) also closed down 2.5% after a $99.7 million BTC purchase.
While the cryptocurrency purchases by treasury companies pressured stock prices, announcements of new cryptocurrency transformations had the opposite effect.
AgriFORCE Growing Systems (AGRI), which sells agricultural technology, saw its stock price close up nearly 138% after announcing plans to rebrand as AVAX One and raise $550 million to purchase Avalanche (AVAX).
Similarly, Qualigen Therapeutics (QLGN), which develops cancer treatments, saw its stock price jump nearly 95% after announcing a $41 million investment in the electric vehicle startup Faraday Future to launch "cryptocurrency and web3-related business."
Meanwhile, on Monday, cryptocurrency custody and trading company Bakkt Holdings (BKKT) rose over 40% after appointing cryptocurrency entrepreneur Mike Alfred to its board, who has founded and led several cryptocurrency companies.
The stock price of medical device company Semler Scientific (SMLR) also rose over 9.8% after announcing an agreement with the asset management company led by failed presidential candidate Vivek Ramaswamy to transform into a Bitcoin buyer, Strive Inc. However, Strive Inc. (ASST) saw its stock price plummet 4.6%.
The trading day was mixed, following comments from HashKey Capital CEO Deng Chao on Saturday, who told Cointelegraph that only cryptocurrency treasury companies with long-term strategies can "survive in any market," emphasizing that they should build long-term value rather than chase short-term gains.
"Digital assets themselves are not inherently unsustainable; the key is how to manage them," Deng Chao stated.
Related: BitMine announces $365 million in new funding, holding over 2% of Ethereum (ETH) supply
Original article: “Cryptocurrency Stocks Show Mixed Performance, Treasury Purchases Suppress Gains”
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