Crypto stocks saw mixed day of trading in the US on Monday as investors winced over crypto treasury firms’ latest buying, but still took well to new crypto pivots and acquisitions.
Stocks tied to the crypto sector fell in early trading on the US and Canadian markets on Monday as the price of Bitcoin (BTC) dropped under $113,000 for the first time in nearly two weeks, as hype from the Federal Reserve’s rate cut on Wednesday faded.
Crypto treasury companies, which buy and hold crypto, largely led Monday’s losses.
Crypto treasuries fill Monday’s losers
Medical device company Helius Medical Technologies (HSDT) had the largest share price drop of crypto companies on Monday, ending the trading day down 33.6% after announcing its first Solana (SOL) buy. It saw an 8.6% lift after-hours to $17.40.
Helius was the worst-performing crypto-tied stock on Monday, ending the trading day down nearly 34%. Source: Google Finance
The company spent over $175.6 million, buying 760,190 SOL at an average cost of $231. Solana has dropped 7% on the day to $218, valuing Helius’ holdings at under $166 million.
Meanwhile, shares in the Changpeng Zhao-backed vape company turned BNB (BNB) treasury CEA Industries (BNC) tumbled 19.5% after announcing a $500 million share deal on Sunday, which it said would cause volatility.
Adding to the day’s losses was Tom Lee’s BitMine Immersion Technologies (BMNR), ending down 10% after it announced a $1.1 billion purchase of Ether (ETH). The Bitcoin-buying giant Strategy Inc. (MSTR) also finished down 2.5% after a $99.7 million BTC buy.
Crypto pivoting AgriFORCE, Qualigen are Monday’s best gainers
While crypto buying from treasury companies dampened share prices, announcements of new crypto pivots had an opposite effect.
AgriFORCE Growing Systems (AGRI), which sells farming technology, saw its shares close at nearly 138% on a plan to rebrand as AVAX One and raise $550 million to buy Avalanche (AVAX).
Related: Metaplanet becomes fifth-largest corporate Bitcoin treasury with $633M buy
Similarly, shares in Qualigen Therapeutics (QLGN), which develops cancer treatments, jumped nearly 95% after it said it would start a “crypto and web3-related business” with a $41 million investment from the crypto-dabbling EV startup Faraday Future.
Bakkt and Semler add to Monday’s winners
Meanwhile, on Monday, the crypto custody and trading firm Bakkt Holdings (BKKT) rallied over 40% after appointing crypto entrepreneur Mike Alfred to its board of directors, who has founded and led multiple crypto companies.
Shares in the medical device turned Bitcoin treasury company Semler Scientific (SMLR) also rose over 9.8% after announcing that Strive Inc., the asset manager turned Bitcoin buyer led by failed presidential bidder Vivek Ramaswamy, agreed to acquire it. Shares in Strive Inc. (ASST) plunged 4.6%, however.
The mixed trading day comes after HashKey Capital CEO Deng Chao told Cointelegraph on Saturday that only crypto treasury companies with a long-term strategy will “survive any market,” and stressed they should build long-term value over chasing short-term gains.
“Digital assets themselves are not inherently unsustainable; it is how they are managed that makes the difference,” Chao said.
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