Jul 19, 2025

Today I came across an interesting article discussing the concept of Bitcoin treasuries and how they are becoming increasingly popular. The basic idea is that merging a pot of crypto with a small US public company can double the value of the crypto. This dynamic has led to the emergence of businesses supplying public companies to crypto investors. Cantor Fitzgerald, for example, is actively involved in merging SPACs with pots of Bitcoin to take them public. This business model has proven to be lucrative for all parties involved, with significant premiums being offered for these transactions.

One specific example highlighted in the news was the announcement of Bitcoin Standard Treasury Company going public through a business combination with Cantor Equity Partners I, Inc. This move is expected to launch with 30,021 Bitcoin on its balance sheet and up to $1.5 billion of PIPE financing. The aim is to acquire additional Bitcoin and develop Bitcoin-native capital-markets products and advisory services. This strategy showcases the growing trend of companies leveraging public listings to increase the value of their crypto holdings.

In a separate development, the rise of memecoins, particularly slang memecoins, has caught my attention. These coins derive their value from community sentiment and are vulnerable to manipulation. A study found that a significant percentage of these coins engage in artificial growth strategies, such as wash trading and liquidity pool-based price inflation. Despite the risks, the financialization of unconventional assets through memecoins presents an intriguing concept that could potentially revolutionize the market.

Furthermore, there was an interesting case involving a small liquor company called LQR House Inc. A crypto entrepreneur acquired a majority stake in the company with plans to explore new strategies, potentially related to crypto treasuries. In response, the company engaged in a tactic to dilute the entrepreneur’s control by selling more stock. This situation exemplifies the complex dynamics at play when small public companies intersect with crypto entrepreneurs, showcasing the evolving landscape of financial markets.

Lastly, the article discussed the legality and implications of algorithmic anti-collusion measures. While it is illegal for companies to collude and fix prices, there are instances where signaling price stability can be mutually beneficial. The article delves into the challenges and nuances of preventing collusion through algorithmic means, highlighting the fine line between anti-competitive behavior and legitimate business practices. Overall, these developments underscore the evolving nature of financial markets and the need for robust regulatory frameworks to address emerging trends in the industry.

Stay Well!