Exploring the Driving Forces Behind the Surge in Encryption Company Stock Prices

Recently, the stock prices of some cryptocurrency-related companies have seen significant increases. The reasons behind this surge have sparked widespread discussion within the industry. This article will take a well-known company as an example to analyze the driving factors behind its stock price increase.

Since the company implemented its Bitcoin reserve strategy in 2020, its stock price has soared from $13 to $455, an astonishing increase. So, where does this 35-fold increase come from? After analysis, we found that:

• The 11-fold increase comes from the price of Bitcoin rising from $11,000 to $118,000.
• The 25x increase is due to the company's treasury strategy.

It can be seen that the impact of the treasury strategy far exceeds the rise in the token price itself.

The digital asset treasury strategy adopted by the company (DAT) mainly increases the number of tokens held per share through the following methods:

1. Issue shares, when the net asset value is greater than 1, the number of tokens per share can be increased.
2. Use token price fluctuations to reduce borrowing costs and increase investment returns.
3. Use convertible bonds/preferred stocks to limit equity dilution

It is worth mentioning that Ethereum's volatility is higher than Bitcoin's, so this strategy may have a greater impact on Ethereum DAT.

Since 2020, a certain company has begun to use Bitcoin as part of its treasury, employing various financing methods to purchase Bitcoin, including internal cash, convertible senior bonds, senior secured bonds, secured loans, and ATM stock issuance plans.

Another company named Bitmine announced its Ethereum treasury strategy on June 30, 2025, and completed the transaction on July 9. In contrast, on the 7th day after the transaction was completed:

• Bitmine acquired Ethereum worth $1 billion
• A certain company acquired $250 million worth of tokens in the same timeframe.

Overall, these cases indicate that encryption companies can effectively increase the number of tokens per share by purchasing tokens, thereby driving up the stock price. The impact of treasury strategies may far exceed the increase in the token price itself, providing us with a new perspective on understanding the stock price fluctuations of encryption-related companies.