From biotechs to gold miners, firms bet on crypto treasury strategy despite warnings of potential market fallout

In a striking development in global capital markets, more than 150 publicly listed companies have begun purchasing cryptocurrencies to hold on their balance sheets, aiming to boost investor interest and lift their share prices. The trend, dubbed the “crypto treasury” strategy, has taken hold across a surprising array of industries, from biotechnology to gold mining to the hospitality sector.

Proponents of the move say it provides an innovative way to diversify assets and position companies as forward-looking, tech-savvy players in a digital economy. Critics, however, are warning of the inherent volatility of cryptocurrencies and the risk of severe financial damage if the market turns.

The recent surge in corporate crypto buying has been fueled by several high-profile cases. Earlier this year, a mid-cap biotech saw its stock jump 40 percent in a week after announcing it had acquired $50 million worth of Bitcoin. A Canadian gold mining company followed suit with a $30 million purchase of Ethereum, citing “long-term value preservation” in the face of inflation. Even a chain of boutique hotels in Southeast Asia made headlines when it revealed it was holding Solana and Polygon tokens “to align with the travel habits of next-generation customers.”

These announcements have sparked frenzied trading activity in the companies’ shares, often sending valuations soaring well beyond what analysts say the underlying businesses justify. “It’s classic market psychology,” said Andrew Lawson, an equity strategist at Westbridge Capital. “The moment a company says ‘we own Bitcoin,’ it gets lumped in with the broader crypto narrative, regardless of whether it has any operational synergy with digital assets.”

Data from market research firm CryptoMetrics shows that the average share price of companies announcing a crypto purchase rose 22 percent within 10 trading days of the disclosure. However, in cases where crypto prices fell sharply afterward, those gains often evaporated just as quickly, leaving retail investors nursing losses.

Regulators are beginning to take notice. The U.S. Securities and Exchange Commission has reportedly launched preliminary inquiries into whether companies are adequately disclosing the risks of holding volatile digital assets on their balance sheets. Meanwhile, the UK’s Financial Conduct Authority has issued a statement urging “caution in interpreting corporate cryptocurrency acquisitions as a signal of financial strength.”

Industry veterans are skeptical the trend can last. “This has all the hallmarks of a speculative bubble,” said Dr. Eleanor Kim, a professor of financial markets at the London School of Economics. “If crypto prices correct sharply, we could see a wave of write-downs, shareholder lawsuits, and even bankruptcies.”

Still, for now, corporate treasurers appear undeterred. Many are framing their crypto buys as part of a broader shift toward alternative assets, alongside gold, art, and carbon credits. Supporters argue that even modest holdings in digital assets can attract a new cohort of tech-savvy investors and improve liquidity in the company’s shares.

Whether the “crypto treasury” boom becomes a lasting feature of corporate finance or a short-lived speculative mania will likely depend on the notoriously unpredictable swings of the cryptocurrency market itself. For now, Wall Street and Main Street alike are watching closely, wondering which company will be next to place a bold—and risky—bet on digital gold.