On Monday, new crypto acquisitions from treasury companies were viewed unfavorably by investors, though announcements from businesses pivoting to crypto had a contradictory effect.
A mixed day of trading was observed by crypto stocks in the US on Monday, as investors reacted negatively to recent purchases by crypto treasury firms but responded well to new pivots and acquisitions.
It was noted that stocks tied to the crypto sector fell in early trading on the US and Canadian markets on Monday. This came as Bitcoin’s price dropped below $113,000 for the first time in nearly two weeks, with the hype from the Federal Reserve’s rate cut on Wednesday fading.
Monday’s losses were largely led by crypto treasury companies, which buy and hold digital currencies.
Crypto Treasuries Lead Monday’s Market Declines
The largest share price drop among crypto companies on Monday was incurred by medical device company Helius Medical Technologies (HSDT). Its stock fell 33.6% after it announced its first Solana purchase, yet saw an 8.6% lift after-hours to $17.40.
A purchase of 760,190 SOL was made by the company for over $175.6 million at an average cost of $231. Solana has since dropped 7% on the day to $218, valuing the holdings at under $166 million.
Shares in the Changpeng Zhao-backed vape company turned BNB treasury CEA Industries (BNC) tumbled 19.5% after a $500 million share deal was announced on Sunday, a deal that the company said would cause volatility.
A $1.1 billion Ether purchase was announced by Tom Lee’s BitMine Immersion Technologies (BMNR), which finished the day down 10%. The Bitcoin-buying giant Strategy Inc. (MSTR) also finished down 2.5% after a $99.7 million BTC buy.
AgriFORCE and Qualigen Lead Monday’s Gainers with Crypto Pivot
A different tone was taken by investors toward new crypto pivots, as announcements of their acquisitions had a positive effect, while purchases by crypto treasury companies dampened share prices.
A share increase of nearly 138% was seen in AgriFORCE Growing Systems (AGRI), which sells farming technology. The rise followed a plan to rebrand as AVAX One and raise $550 million to acquire Avalanche.
A $41 million investment from crypto-dabbling EV startup Faraday Future was received by cancer treatment developer Qualigen Therapeutics (QLGN). Its shares jumped nearly 95% after it announced it would start a new “crypto and web3-related business.”
Bakkt and Semler Join Monday’s Market Winners
A rally of over 40% was experienced by Bakkt Holdings (BKKT) on Monday, following the appointment of crypto entrepreneur Mike Alfred to its board of directors. Alfred has founded and led multiple crypto companies.
Shares in the medical device turned Bitcoin treasury company Semler Scientific (SMLR) rose over 9.8% after it was announced that Strive Inc., the asset manager led by failed presidential bidder Vivek Ramaswamy, agreed to acquire it. Shares in Strive Inc. (ASST), however, plunged 4.6%.
HashKey Capital CEO Deng Chao’s advice to on Saturday was that only crypto treasury companies with a long-term strategy will “survive any market.” He stressed that long-term value should be built over chasing short-term gains.
It was said by Chao that “digital assets are not inherently unsustainable; it is how they are managed that makes all the difference.”
