Educational Technology Company Classover Holdings (Kidz) said in early May it would sell $ 400 million shares to buy Solana. Its stock exploded higher. Shares in the thin traded company, then with a market capital that was well shy of $ 50 million rose from $ 1.15 to more than $ 7 in just two sessions before sitting back to the current $ 3.69. .

Classover was not the first company to experience the crypto wave and it won’t be the last.

A growing number of unclear, microcap and nanocap companies embrace cryptocurrency-not as a business line or payment method, but as a headline that seizes balance. They often follow the same script: A message of a shift in strategy to keep digital assets like Bitcoin or Solana, followed by a pop in the share price.

Today, the GD Culture Group (GDC), a company with a market capital of about $ 30 million, announced, plans to sell up to $ 300 million in stocks to buy Bitcoin and Trumpcoin (Trump), a meme token that became the theme of US President Donald Trump. The company declared that this purchase was part of its new “Crypto Asset Treasury Strategy.” The stock rose 13% on the news.

Even today, Amber International Holdings (AMBR), valued at just under $ 900 million, said it would award $ 100 million to a basket of cryptocurrencies, including Bitcoin, Ethereum ETH$2,487.58Solana, XRP$2.53Binance Coin Bnb$662.31 and Sui Sui$3.96.

Everyone is trying to emulate the original Corporate Crypto Evangelist: Strategy (Mstr). In August 2020, the company turned to the company software to use Bitcoin as its primary state reserve asset. Since then, its stock has risen more than 3,000%, did not burn by software sales or product innovation, but the price of Bitcoin. Many retail investors now treat the stock as a power of attorney for Bitcoin exposure.

But while the strategy had a long-standing business and a consistent, transparent strategy out of its chairman, Michael Saylor, who emerged early on as a Bitcoin spokesman-these newer companies out to exploit the cryptohype machine with a little track record or follow-up.

Take Worksport, a Nasdaq-Børnoteer Manufacturer of Truck Bed. Last year, the company announced plans to invest its cash reserves in Bitcoin and XRP. Its stock, which was sliding for years, jumped after the message. But the rally did not last and the stock has since returned to the level before settlement. The company said in April that it had made an initial purchase of six numbers.

“We are still bullish at our original positions and have held. We will consider adding in the future as needed,” a spokesman Coindesk told at the time.

Playbook seems straightforward: Find a buzzy crypto token, advertise a purchase or strategic allocation, and then run the temporary increase in the attention of retail investor. In many cases, the amount that the company plans to invest a lot exceeds its own market value. It was true for Classover and GD Culture, both of which proposed award of several hundred million dollars despite being a fraction of it.

It is unclear whether these companies will actually make their proposed purchases or how they plan to raise the funds. But the market’s reaction points to a pattern: microcap companies use crypto as a megaphone.

Still showing the tactics effective in the short term. As long as the market rewards crypto-related headlines with stock conditions, small businesses are likely to continue to jump on the bandwagon.

Whether any of them become long-term crypto-believers as a strategy is to see.

However, there are some companies that seem to take the strategy route more seriously – and see results. Japanese investment company Metaplanet has steadily grown its Bitcoin stocks to 6,796 since the launch of its Bitcoin Treasury operations in April 2024 and placed as one of the more committed business owners in Asia.

Similarly, US-based medical unit company Semler Scientific has purchased Bitcoin consistently since adopted it as a reserve asset. It now has 3,634 BTC on its balance, which reflects a strategy that reflects Microstrateys Playbook rather than just borrowing its headlines.

Disclaimer: Parts of this article were generated with the help of AI tools and reviewed by our editorial team to ensure accuracy and compliance with our standards. For more information, see Coindesk’s full AI policy.