Companies that stockpile cryptocurrencies as treasury assets emerged as central players in the digital asset market earlier this summer.
Investors poured into these names during bitcoin’s slump, betting on long-term returns.
But the rally has cooled sharply in August, with attention now turning to the Federal Reserve’s Jackson Hole symposium this week as a potential catalyst for renewed momentum.
Depending on the central bank’s messaging on rates and economic conditions, some of these stocks could regain traction if appetite for risk assets returns.
Winners with high-profile backers
Ethzilla, a former biotech firm now focused on ether accumulation, leads the group with a month-to-date gain of about 114% after announcing its strategy on 29 July.
BitMine Immersion Technologies, which is also ether-focused, has posted the second-largest rise this month, followed by Solana holding company DeFi Development Corp.
Support from well-known investors has helped several firms hold up better amid the slowdown.
BitMine Immersion gained credibility when Fundstrat Global Advisors’ Tom Lee became chairman in June, shortly before billionaire Peter Thiel disclosed a 9% stake. Thiel later added a 7.5% stake in Ethzilla.
According to Michael Bucella, co-founder and managing partner at Neoclassic Capital, large backers extend their reputations to these vehicles, instilling confidence in investors that companies will operate as legitimate businesses.
This creates momentum, market depth, and higher trading activity, enabling firms to raise significant sums through at-the-market (ATM) programmes to acquire more digital assets.
Steve Kurz, global head of asset management at Galaxy Digital, stressed the importance of management quality.
“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,” he said, noting that firms could evolve into broader ecosystem players beyond their initial treasury strategy.
Ether-focused strategies outperform
Companies focused on ether rather than bitcoin have delivered stronger returns overall.
This outperformance is tied to several tailwinds: the successful IPO of stablecoin issuer Circle, the passage of the GENIUS Act providing a regulatory framework for stablecoins, and surging institutional interest in stablecoins, most of which run on Ethereum.
Bit Digital, which pivoted from bitcoin mining in June to focus on ether treasury accumulation and staking, has seen only modest success.
Its shares are up 11% since the announcement but are down 6.5% this month.
In contrast, Solana-focused DeFi Development has seen spectacular gains, rising about 2,600% since announcing its strategy on 7 April, a return nearly as strong as that of Strategy — the company that pioneered the original bitcoin treasury strategy in 2020.
DeFi Development is still up 8% in August despite the broader cooling.
Mixed fortunes for early pioneers
Strategy, the best-known bitcoin treasury adopter, is down around 16% this month despite its long-term success since its 2020 pivot.
Other latecomers have seen mixed results. CEA Industries, a Canadian vape company that declared plans in July to accumulate Binance Coin, surged 550% immediately after its announcement on 28 July but has since dropped 28% in August.
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