Crypto Bloodbath: ALT5 Sigma, Kindly MD, Strategy, Metaplanet, and DDC Enterprise Shares Get Obliterated in Market Rout
Digital asset carnage spreads beyond cryptocurrencies as blockchain-adjacent stocks get hammered.
The Great Unraveling
Investors are dumping anything with crypto exposure—ALT5 Sigma's trading infrastructure plays, Kindly MD's telehealth pivot, Strategy's consulting arm, Metaplanet's web3 ambitions, and DDC Enterprise's logistics solutions all getting crushed simultaneously. No sector immunity when Bitcoin sneezes.
Portfolio Decimation
These weren't supposed to be correlated plays—until they were. Turns out putting 'blockchain' in your investor presentation works great during bull runs but becomes an anchor during corrections. Traditional finance guys are probably enjoying their coffee extra sweet today watching crypto's 'disruption' get disrupted.
Market Reality Check
When five companies across different sectors tank together, it's not about fundamentals—it's about sentiment. And right now, sentiment smells like last week's blockchain conference coffee. Maybe they should've focused on revenue instead of NFT roadmaps.
Many firms are turning to more complex funding
Lenders, brokers and derivatives desks have built a niche toolkit for them with Bitcoin-backed loans, token-linked convertibles and structured payouts. These options can be faster and more flexible than bank credit, but they can also stack risk on volatile assets or swap upside for short-term yield, tightening the margin for error.
One example is Smarter Web Co., a London web-design firm that holds Bitcoin. It issued a bond indexed to the coin rather than pounds, so a rising Bitcoin price increases what the firm owes.
CEO Andrew Webley said only 5% of the treasury is tied to the bond and argued it is safer than fiat debt. “If Bitcoin goes up in value, as long as our shares go up by more than Bitcoin, then that will convert into equity,” he said. “If it goes down, we are not exposing ourselves, the worst that can happen is we pay the debt back. Our debt in Bitcoin.”
DDC Enterprise Ltd., once a struggling meal company, has access to more than $1 billion, most of it untapped, through a mix of debt, equity lines, and shelf offerings. Its shares have rolled over after soaring just weeks ago.
Nasdaq has reportedly begun asking some token-holding issuers to secure shareholder approval before selling new shares to buy more tokens. Issuing stock has been a key way for DATs to raise money without taking on debt.
Market leaders aren’t immune
Strategy and Japan’s Metaplanet Inc., two of the best-known DATs, have fallen lately after strong runs over the past year, prompting talk of consolidation as weaker players struggle and stronger ones eye peers’ token stacks.
Strategy did not make the S&P 500 in Friday’s index reshuffle despite meeting eligibility criteria. Its shares have gone mostly nowhere since April even as Bitcoin climbed, pulling the multiple of its Bitcoin to market value (mNAV) to about 1.5.
On Monday, the company bought roughly $217 million of Bitcoin through an at-the-market offering. Strategy did not respond to a request for comment.
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