Key Highlights
- Small-cap firms are trading cash for cryptic tokens, turning their treasuries into digital treasure chests-only to find they’re filled with sand and regret.
- In-kind DATs are like a blind date with a blockchain: you never know if it’s a diamond or a dud, but the stakes are sky-high.
- Some stocks are now worth less than the crypto they hold-because even the moon can crash, and the market’s got a bad habit of laughing while you fall.
A new report reveals that small-cap executives are playing a high-stakes game of “crypto or bust,” funding digital-asset treasuries with in-kind contributions instead of cold, hard cash. It’s a gamble that could make a casino blush, and retail investors are the ones left holding the bag-literally.
Risky examples from this year
Alt5 Sigma Corp. raised $1.5 billion, half of it in unlisted WLFI tokens-because who wouldn’t want to invest in a token so obscure, even its creators can’t value it? Flora Growth Corp. took it a step further, raising $401 million in 0G tokens priced at $3, now trading at a discount so steep, it’s practically a clearance sale. 🚨 Both companies’ shares have plummeted more than 65% since their DAT announcements, because nothing says “trust us” like a 65% drop.
“An 80% in-kind DAT is like putting your entire savings into a single, volatile token and then telling investors, ‘Hey, look at this fancy equity wrapper!’” said Akshat Vaidya, co-founder of Maelstrom, in a Bloomberg report. “If the token drops 50%, the share price falls 80%-100% because the premium evaporates faster than a desert mirage.”
Chris Holland, partner at HM, added, “If market sentiment shifts, public investors-especially retail-may be left exposed if the underlying illiquidity is finally tested. It’s like playing poker with a full house, but the dealer’s holding all the cards.”
In-kind contributions have been part of the DAT trade since early 2025. While large, liquid tokens like Blockstream’s 25,000 Bitcoin are less risky, smaller, illiquid tokens are a different story. After all, why buy a house when you can just live in a tent made of crypto? 🧺💸
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2025-11-14 23:45