This is how the alt treasury company scheme works : > Company ABC trades on Nasdaq at $10M mcap, with a share price of $10 > The company "raises" $100M from investors/VCs at its current $10 mkt price > These investors hold almost all of the company as a consequence > The company acquires $100M of an altcoin to become a treasury company (most scammy scenario is when the investors are the ones "selling" their locked tokens to the company) > mNAV is close to 1x when this deal is done privately > The deal is announced publicly > Retail can start aping into the shares of this company > The share price quickly goes from $10 to $30 because of the announcement > All early investors are sitting in a risk-free entry at $10 (risk-free because it's almost backed 1-to-1 by the altcoin treasury) > The next wave of retail starts buying at $30 minimum, ie 3x mNAV+ > 3 months later, the shares of the initial investors are unlocked, and the most mercenary ones will dump ruthlessly, and repeat the scheme with as many companies as possible Some people have understood that it's a guaranteed-profit loop that they can rinse and repeat as long as the market still pumps the new altcoin treasury names. There are a lot of opportunities in the crypto treasury plays but you must be aware of this dynamic going on against you if you are the retail that does not have access to the private deals. Also be aware that this scheme can be used to get rid of locked altcoins in some cases.

I forgot to mention that since 90%+ of the shares are locked right after the public announcement, the stock is trading with a very low float, which drastically amplifies its ability to pump hard after the news

INTERESTING

"Under an agreement with the Ethena Foundation, we may direct an initial purchase of locked ENA, matching the PIPE proceeds"