Companies hoard alts, stock price big pump 226%, risks and opportunities coexist.

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On July 18, a research institution released the latest report titled "altcoin Strategic Reserve" stating that companies obtain exposure to Crypto Assets through financial instruments such as Convertible Bonds and equity issuance, usually aiming to gradually increase the per-share Crypto Assets holdings. This strategy was initially promoted by companies holding over 600,000 Bitcoins, which use BTC as a tool for Hedging against inflation and currency depreciation.

Nowadays, alts have also entered the corporate spotlight. Companies that add certain altcoin assets to their balance sheets are providing a rare investment entry point for investors who wish to invest in these tokens but lack convenient channels such as spot ETFs.

The stock market reacts strongly to such news. According to data statistics, companies that announce holding alts see an average daily stock price increase of 150%, a weekly increase of 185%, and a monthly increase of 226%. However, these strategies carry significant risks: compared to Bitcoin, alts usually have greater volatility, lower liquidity, and more technological experimentalism, which may amplify losses during market downturns.

The report suggests that if these tokens are used for staking or other network-based functions, it could enhance the liquidity, security, and legitimacy of the entire ecosystem, making altcoin reserves a potential catalyst for the broader adoption of Crypto Assets.

BTC-2.21%
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