New blue ocean of encryption capital, a leveraged investment method for public companies transforming into crypto assets

Traditional cryptocurrency managers raising funds to buy Crypto Assets have long been out of fashion. The Bitcoin reserve strategy company Strategy has raised funds through the company's financing channels, such as issuing new shares, convertible bonds, or preferred stocks to buy Bitcoin, and many companies have followed suit. The latest play of Crypto Assets companies is to purchase small listed companies and convert them into a type of cryptocurrency company, then sell their stocks at a premium, which is more efficient and yields better returns. This article will take you through the latest trading strategies of several crypto companies, including GSR, Sora Ventures, and UTXO Management.

(78 publicly listed companies around the world are rushing to imitate MicroStrategy (Strategy), what is the Bitcoin reserve strategy? )

Grayscale GBTC has been highly praised by investors.

Traditional crypto asset managers have launched publicly traded crypto asset funds, allowing investors to purchase crypto assets. The most famous example is Grayscale (, which is a crypto asset trust fund company under DCG, founded in 2013. Through its trust funds, it enables qualified investors in the United States to invest in crypto asset products within a regulated environment via traditional financial markets. Notable firms like Ark Invest and Three Arrows Capital invest in Bitcoin through its flagship product, Grayscale Bitcoin Trust )GBTC(.

In the early days, there were not many ways to purchase Bitcoin through traditional financial channels, so GBTC was favored by many institutional investors, and it has always been at a premium compared to Bitcoin spot prices )Premium, meaning that the price of GBTC was higher than the Bitcoin spot price it tracks (. The premium once reached as high as 169%, demonstrating the enthusiasm of investors for it.

However, at the beginning of last year, the U.S. Securities and Exchange Commission approved the listing of Bitcoin spot ETFs. The entry of traditional asset giants like BlackRock and Fidelity allowed retail investors to easily invest in Bitcoin through their brokerage accounts. GBTC faced a crazy wave of sell-offs, and the entry of traditional financial institutions brought such funds closer to market levels, eliminating large premiums and discounts.

The new investment method of crypto companies: buying small listed companies

The well-known crypto asset market maker GSR has developed a new type of investment method, which is to purchase a very small publicly listed company and convert it into a cryptocurrency-style company, then sell its shares at a premium. The "purchase" mentioned here does not refer to "acquiring 100% of the shares and privatizing it," but rather to "buying new shares of the company with cash, thereby controlling the company, investing its funds into crypto assets, and then selling more shares."

Does this model feel somewhat familiar?

At least in the latter half, "investing funds into Crypto Assets and then selling more shares" is what the Bitcoin development company, as well as the Bitcoin reserve strategy company, Strategy, is doing.

)Strategy leads the trend, a detailed article on Bitcoin reserve strategy company investment guide (

However, it is evident that crypto asset managers cannot operate like Strategy. If they use funds raised from their own company, at most they can only issue a fund, and cannot enjoy high premium space. At least the glorious era of Grayscale has become history. What they can do, and what allows the funds to more effectively leverage the stick effect, is to buy into small listed companies!

GSR leads the investment in Upexi, with the stock price tripling in one day.

Upexi is a company headquartered in Florida, USA, specializing in the development, manufacturing, and distribution of consumer goods as a brand owner.

The company announced that it has reached an agreement with investors to sell approximately 43.9 million shares of common stock or pre-funded warrants at a price of $2.28 per share through a private placement, with total proceeds of $100 million.

This transaction was led by GSR, with participation from many well-known crypto assets venture capital firms, such as Delphi Ventures, Maelstrom ) Arthur Hayes family office (, and others.

The company plans to use approximately $5.3 million as operating capital and to reduce debt, with the remaining funds allocated to establish the company's Solana financial operations and to purchase Solana.

Upexi's stock price closed at $2.27 per share last week, and after the news was released yesterday, it surged 330% to $9.89. Crypto companies like GSR have effectively tripled their earnings, making this premium clearly more profitable than operating a crypto fund!

UTXO Management and Sora Ventures are looking for targets in the Asian market

Sora Ventures and UTXO Management are actively seeking targets in the Asian market, executing plans similar to those of GSR.

They introduced a Bitcoin strategy through the Japanese listed company Metaplanet last year, achieving significant success. Originally operating in the hospitality industry, Metaplanet announced in April last year that it would imitate Microstrategy ), and has since changed its name to Strategy(, shifting towards Bitcoin financial strategies and delivering astonishing returns to its shareholders. In the 2024 fiscal year, Metaplanet achieved its first operating profit since 2017, with the hotel also turning from loss to profit in 2024, recording an operating profit of 102 million yen. However, the real source of profit came from Bitcoin, which brought the company an operating profit of 687 million yen ) approximately 4.47 million USD ( in the fourth quarter, accounting for 65% of the total annual revenue.

)Metaplanet's financial report has turned profitable, with options creating Bitcoin revenue as an important source of profit(

Its stock price has risen by 900% since last April, bringing considerable profits to early investors.

Sora Ventures, in collaboration with UTXO Management and multiple investors, successfully acquired a majority stake in HK Asia Holdings Limited (Stock Code: 1723.HK) ), a company listed on the Hong Kong Stock Exchange, at the end of January this year. They plan to rebrand it as "Moon Inc." and further explore Crypto Assets investment and Web 3.0 innovation opportunities.

( Hong Kong stock micro strategy? UTXO Management partners with Sora Ventures to complete a significant acquisition, HK Asia Holdings will be reshaped into Moon )

Hong Kong Asia Holdings' stock price has increased by 13 times so far this year.

As various crypto assets companies compete to enter traditional finance in search of new blue oceans, could this also be another new choice for investors to follow? It is worth continuing to observe and pay attention to.

This article on the new blue ocean of encryption capital, the trading strategy for public companies transforming into leveraged investments in crypto assets, first appeared in Chain News ABMedia.