Altcoin Acquisitions by Public Shells Prompt Investor Concern, FT Reports

Altcoin Treasury Strategies by Public Firms Stir Caution Among Analysts

Public companies are increasingly looking to mimic MicroStrategy’s bitcoin treasury playbook by accumulating altcoins—but analysts warn the move could be short-lived and risky.

Since 2020, MicroStrategy (MSTR) has acquired nearly 2.9% of all bitcoin that will ever exist, sending its share price soaring over 3,000%. The success of this BTC-centric strategy has inspired others to experiment with ether and now, even smaller altcoins.

According to a Financial Times report, several firms are pursuing these strategies via publicly listed shell companies. One such effort involves Avalanche, which is considering selling AVAX tokens to a shell entity that would then invest the proceeds and attract investor attention. Similarly, Canadian investment firm RSV Capital is reportedly raising $200 million to acquire TON tokens using a similar structure.

Litecoin co-founder Charlie Lee recently funded MEI Pharma (MEIP) with $100 million to buy LTC. The stock initially jumped 17% before retreating; it’s now up about 4.9% on the week.

Despite these initial surges, financial experts remain skeptical. “It’s hugely speculative,” said Eric Benoist of Natixis CIB. “At the end of the day, the company will be worth only what’s on its crypto balance sheet—and that’s it.”

Geoff Kendrick, global head of digital assets at Standard Chartered, labeled such moves into small altcoin treasuries “a flash in the pan,” warning that price collapses could severely impact both equity and debt holders.

While BTC treasuries have demonstrated long-term potential, analysts caution that using lesser-known altcoins as corporate reserve assets may offer little more than a short-term stock price boost with high downside risk.