Crypto companies that dumped coins into their balance sheets earlier this year are now watching their stocks bleed. August crushed the rally these firms enjoyed just weeks ago, slamming names that had become investor magnets during the sideways bitcoin market.
The sell-off arrives just before the Federal Reserve’s Jackson Hole symposium, where whatever the hell Jerome Powell says next could drag these stocks even deeper, or spark a quick rebound. This entire picture was reported by CNBC, who tracked every company in the space holding crypto as treasury.
Some of these companies had only just started their crypto play. Ethzilla, which used to be a biotech firm called 180 Life Sciences, jumped into the game on July 29. Investors reacted fast.
The stock exploded in early August and is now showing a 114% gain for the month, the highest return in the group. Right behind it is BitMine Immersion Technologies, which focused on ether instead of bitcoin, followed by DeFi Development Corp, a company that went all-in on Solana back in April.
Biggest gains tied to timing and tokens
DeFi Development made its move on April 7 and has climbed 2,600% since then. Even in August, while others tanked, it’s still up 8%. That kind of gain almost matches what Strategy pulled off since launching its now-famous bitcoin treasury plan in June 2020. But Strategy’s current numbers are ugly; it’s down 16% this month.
The timing of each company’s crypto shift clearly matters. No two firms announced their strategies at the same time, making head-to-head comparisons messy. Still, some stocks burned fast.
CEA Industries, a vape company out of Canada, jumped 550% on July 28 just for saying it was accumulating Binance Coin. The hype didn’t last. The stock is now down 28% in August.
Bit Digital tried switching things up by ditching bitcoin mining in June to go full ether treasury and staking. The results? Meh. Since the announcement, shares are up 11%, but in August alone, they’re already down 6.5%.
High-profile investors fuel confidence and volume
Some names have got famous backers putting their faces on the line. Tom Lee, from Fundstrat Global Advisors, became chairman of BitMine Immersion in late June. Just after that, Peter Thiel picked up a 9% stake in the company, then added a 7.5% slice of Ethzilla too.
That kind of support does more than look pretty in a press release. Michael Bucella, co-founder and managing partner at Neoclassic Capital, said, “Large names extend their reputation to the vehicle and instill confidence that the backers of these assets — alongside executives and board members with legal ties — will operate them as real businesses, growing revenue while managing risks.”
He added, “That investor confidence creates momentum and market depth, which fuels volume and options activity. This in turn enables these companies to establish sizable ATM programs, raising large sums of capital to acquire more of the asset and gain greater prominence in its ecosystem.”
Steve Kurz, global head of asset management at Galaxy Digital, said it’s not just about who invests but who runs the company. Galaxy, which has backed firms like SharpLink Gaming and ReserveOne, sees management as a key driver for whether a crypto treasury stock can actually survive.
“Those that raise more capital with the right partners, with the right business model, with the right management teams have a much better shot of achieving some escape velocity with their ultimate treasury management companies, which also can become ecosystem companies that are bigger than just the immediate launch moment,” Kurz said.
The Ether crowd is holding up better than the bitcoin players. There are reasons for that. The IPO of stablecoin issuer Circle, the passing of the GENIUS Act, and an explosion of institutional interest in stablecoins (most of which live on Ethereum) have all helped ether-linked companies gain an edge.
