Company Holding Coin Trend: From Bitcoin to AI Token

In recent years, an increasing number of publicly listed companies have begun to incorporate crypto assets into their asset reserves. This trend of holding coins has expanded from the initial single-digit companies to dozens of companies today. This trend is not limited to Bitcoin but has also extended to mainstream cryptocurrencies such as Ethereum and Solana, and even started to venture into the realm of smaller market cap altcoins, especially AI-related tokens.

However, compared to Bitcoin, these altcoins often exhibit higher volatility. For example, Ethereum dropped about 26.7% in a single day in June 2022, while Solana experienced a decline of 43% in November 2022 due to the bankruptcy of a certain exchange. The volatility of AI tokens is even more pronounced, with some AI-related tokens having volatility rates as high as 15% to 18% over the past 30 days.

Should listed companies incorporate such high-risk assets into their reserves? Let's take a look at some companies that have already started to lay out AI Tokens and their strategies.

Interactive Strength (TRNR): The Fusion of Fitness and AI

Interactive Strength is a Nasdaq-listed fitness equipment and digital services provider, owning two brands: CLMBR and FORME. The company recently announced plans to invest $500 million in a certain AI Token as part of its cryptocurrency strategic reserve to support its AI-driven fitness products.

The company has secured $55 million in startup funding from a private equity giant and a seasoned market maker in the crypto space. This funding was obtained through a "Securities Purchase Agreement," in which the company sells shares in exchange for cash. The purchased Tokens will be managed by a professional custodian, and the trading method will be to buy directly from the market rather than through over-the-counter transactions.

Despite the company’s stock price rising by 15% after the announcement and the related token increasing by 7%, the difficulty of raising $500 million to purchase tokens is significant given the company’s total market capitalization of only $8.4 million. The success of this plan largely depends on whether the company can gradually increase its stock price and the actual implementation of the AI fitness business.

Synaptogenix (SNPX): Attempt of a Biotechnology Company's Transformation

Synaptogenix is a biopharmaceutical company focused on the treatment of neurodegenerative diseases, with a market capitalization of only $5 million. The company announced plans to initially invest $10 million in a certain AI Token, gradually increasing to $100 million.

The initial source of funds is the company's existing cash reserves, and in the future, it plans to supplement this with a $550 million private placement of convertible preferred shares. The mastermind behind this strategy is the well-known figure in the investment circle, James Altucher, who is responsible for formulating and executing the Token investment strategy.

The motivation for this transformation stems from the bottleneck in the company's biopharmaceutical business. By holding and staking AI Tokens, the company hopes to achieve asset appreciation and even plans to change its name and stock code to strengthen the positioning of the AI Token.

However, this strategy also faces significant financial risks. The initial investment has exceeded twice the company's market value, and if the Token price drops significantly, it could lead to a substantial decrease in asset value. In addition, the success of the $550 million private placement largely depends on the operator's charisma and market sentiment.

Oblong (OBLG): Cautious Layout in the IT Field

Oblong is a service provider focused on IT solutions and video collaboration technology, with a market value of approximately $5.3 million. The company recently raised $7.5 million through a private stock placement to purchase a certain AI Token and participate in its staking program.

This layout can be seen as the company's strategic transformation from traditional IT business to the fields of AI and digital assets. The company's CEO stated that the intersection of AI and blockchain is key to future innovation, and the chosen Token is regarded as a potential asset for crypto AI infrastructure.

However, the staking direction chosen by the company is not directly related to its video conferencing business, but rather stems from considerations of staking returns and strategic signaling. This layout is more like a strategic trial of the long-term potential of AI Tokens.

Risks and Opportunities Coexist

Public companies allocating to altcoins, especially AI tokens, can be seen as a high-risk, high-reward gamble. For small-cap companies, this is a capital game betting on the future, and its success or failure depends on market sentiment, narrative continuity, and actual implementation capability.

However, this strategy faces significant risks. First is the financial pressure brought about by high volatility, especially for companies that purchase tokens through high leverage financing. Second is regulatory risk; currently, the compliance of many AI tokens is unclear, and if regulations tighten, companies holding these coins may face fines or be forced to liquidate.

Nevertheless, in the current market environment, many companies are still scrambling to emulate cryptocurrency reserve strategies. They hope to gradually embrace the wave of crypto assets through the capital markets, taking a gamble on the highly volatile altcoins, especially against the backdrop of the continuing heat of AI narratives.

For businesses and investors, it is important to recognize that high volatility is an inherent characteristic of these types of assets. When participating in this trend, it is necessary to weigh the risks against potential rewards and closely monitor changes in market trends and regulatory attitudes.