PIPE Trading and Token Treasury: A New Strategy for Public Companies' Encryption Assets

The encryption vault is undergoing a transformation, shifting from a single holding of Bitcoin to a new model of multi-chain layout, native staking, and token dividends. This trend shows that traditional financial institutions are drawing on the operational methods of blockchain protocols. One of the most discussed topics in the current crypto market is the phenomenon of PIPE trading and listed companies' large-scale allocation of crypto assets. From a well-known blockchain project landing on NASDAQ through a reverse takeover, to emerging DeFi platforms using tokens as core assets and staking targets, this shift is blurring the lines between "listed companies" and "crypto native protocols."

Introduction to PIPE Trading

PIPE is an abbreviation for "Private Investment in Public Equity," referring to private investors injecting funds into publicly listed companies at a discounted price. This method is fast and efficient, allowing bypassing the cumbersome procedures of traditional IPOs. Nowadays, PIPE transactions are increasingly being used by encryption-native companies as a preferred means to go public or expand their influence, often combined with "reverse mergers," providing a shortcut for encryption projects to go public.

Iconic Case Analysis

Capital operation of a well-known blockchain project

Recently, a highly watched case involves the founder of a blockchain project who renamed a Nasdaq-listed company through a reverse merger and plans to complete PIPE financing with a project Token worth 100 million USD. This not only makes the Token a core asset of the company but also suggests the potential introduction of a Token-based dividend mechanism in the future.

It is worth noting that family members of the project's founder will hold important positions, and there are rumors that a member of a well-known political family may join the company's senior management. This PIPE transaction is not just a financial operation, but also integrates multiple elements of politics, family, and capital. Looking back at the development history of this project, we can see that it has consistently followed market trends, replicated popular models, and achieved commercialization. The project has maintained a high market position across multiple market cycles.

The medical technology company has transformed into a DeFi platform.

Another striking case is a company that originally focused on ophthalmic technology transforming into a DeFi platform. The company plans to hold a large amount of a certain emerging Token and operate a verification node, actively participating in network construction. The company has also hired a new CEO from the encryption industry.

In addition, the company may obtain an additional $100 million in Token subscription rights through the second round of PIPE transactions, and the potential encryption asset holdings may exceed $150 million. Considering that this Token project has been online for less than a year, it is one of the "fastest to achieve listing configuration" Token projects.

Global Trends: Diversified Encryption Asset Allocation

The establishment of encryption asset reserves by listed companies has become a global trend and is no longer limited to Bitcoin:

• France: A blockchain group holds approximately 1,600 coins, with a market value about three times that of the Bitcoin holdings.
• Japan: A company known as the "Japanese version of a Bitcoin investment company" holds 10,000 coins, with its stock price being nearly 7 times the value of the Bitcoin holdings.
• Hong Kong: A company backed by well-known internet founders has included a public blockchain Token in its asset portfolio, resulting in a stock price increase of approximately 30%.

By comparing the net asset value multiples of these companies, we can gain insight into the varying levels of demand for encryption assets in different markets. For example, the 7 times premium for Japanese companies is significantly higher than France's 3 times, indicating a stronger demand for such investment targets in the Japanese market.

Why is this trend significant?

PIPE trading and token reserve strategies represent a fundamental shift in the way listed companies are entering the encryption space. We are witnessing the following key trends:

1. Cryptocurrency asset reserves become market signals: Public companies holding specific tokens are not only a matter of financial management but also a manifestation of market stance and ecological alliances.

2. The rise of native token listed companies: Asset portfolios expand from Bitcoin to various tokens, forming diverse strategies bound to specific ecosystems.

3. PIPE trading is becoming the standard pathway: entering the encryption world through "backdoor listing" is becoming a common practice, with advantages of speed and flexibility.

4. Institutions bet on a multi-chain future: Institutional actions indicate that companies are no longer focused solely on Bitcoin, but are choosing to deeply integrate with multiple ecosystems.

We are witnessing the emergence of a new batch of publicly listed companies that operate according to the rules of Web3, yet perform in the traditional financial market. This is not just a shift in corporate strategy, but also an innovation in the operational model of the capital market. In the future, it is possible that every mainstream encryption project will have a corresponding "listed representative." And this is just the beginning.