Crypto’s billions are back, but the premiums aren’t
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Crypto companies are raising billions again but investor premiums have sharply declined. Kalshi is reportedly seeking $1 billion at a $40 billion valuation, nearly double its worth from May. In contrast, Blockchain.com plans an IPO with a valuation of $4-$6 billion, significantly below its prior $14 billion peak. Meanwhile, only four of the top 20 digital asset treasury companies trade above their net asset value (NAV), indicating fading investor enthusiasm for crypto treasury exposure.
Why it matters
The decline in premiums signals a shift in how investors value crypto companies, affecting their ability to raise capital without diluting shareholders. This could impact crypto companies’ growth strategies and their balance sheets. The poor performance of recently listed firms may also temper investor appetite in the crypto capital markets. The Bitget exchange hack and limited recovery prospects show ongoing security risks in the industry.
Key context
The crypto treasury model, pioneered by Michael Saylor’s Strategy Bitcoin in 2020, allowed companies to raise capital at premiums and accumulate crypto assets without shareholder dilution. This model is weakening as most treasury companies now trade below their crypto holdings' value. The Bitget breach resulted in a $388 million loss, with recovery options appearing slim by comparison to similar past hacks. Kalshi’s rapid valuation growth contrasts with Blockchain.com’s lower expected IPO valuation.
Key numbers and entities
Kalshi seeks $1 billion at a $40 billion valuation, up from $22 billion in May. Blockchain.com targets a $4-$6 billion IPO valuation, down from $14 billion previously. Only four of the 20 largest digital asset treasury companies trade above NAV. Bitget lost $388 million in a security breach. NEAR Intents blocked over $50 million of the stolen funds; Tether and Circle froze about $318,013 in tokens. Key investors include Sequoia Capital, Wellington Management, Tiger Global, and Dragoneer Investment Group.
What remains unclear
The final terms and completion of Kalshi’s funding round remain uncertain. The definitive recovery prospects for Bitget’s stolen funds are also not established, with suspicions but no proof of North Korea’s involvement. Investor responses to Blockchain.com’s upcoming IPO and how market dynamics will evolve are not detailed.