Surge in Low-Cap Firms Claiming Massive Crypto Purchases Raises Eyebrows
In the midst of the ongoing crypto bull cycle, a new and questionable trend has emerged: micro-cap public companies are announcing plans to raise hundreds of millions of dollars to buy altcoins like XRP and Solana (SOL) — despite having market capitalizations far below their stated acquisition targets.
Analysts caution these announcements may be insider-driven “pump and dump” schemes targeting stock price spikes.
Examples That Don’t Add Up
This week, Singapore-based Trident Digital Tech, with a market capitalization of just $16 million, announced it would raise up to $500 million to build an XRP treasury. At the time of the announcement, shares were trading below $0.40.
Earlier, Classover Holdings Inc., an educational tech company with a market cap under $100 million, announced a $500 million Solana treasury strategy. Similarly, Webus International, a China-based hospitality and auto company, filed plans for a $300 million XRP treasury while trading under $3 per share.
These funding goals dwarf the actual value of the companies behind them.
VanEck Analyst Flags ‘Insider Pump and Dump’ Red Flags
A senior digital asset researcher at a major investment firm described the wave of announcements as potentially fraudulent attempts to artificially inflate stock prices.
“If the market cap is de minimis and there is no disclosure of new anchor investors, I assume it’s a scam,” the analyst said.
This isn’t just speculation. In one case, Addentax Group Corp., a penny stock with a market cap of just a few million dollars, said it planned to purchase $800 million in Bitcoin and Trump coin. Shares surged temporarily, only to retreat soon after.
DeFi Development Corp’s $5 Billion SOL Plan Sparks Skepticism
Perhaps the most ambitious example yet is DeFi Development Corp, which claims to have secured a share purchase agreement to raise $5 billion for Solana accumulation. As of now, the company’s market cap is around $379 million, though it was only $7 million in March.
While the firm says it signed an agreement with RK Capital Management, a Colorado-based asset manager, questions remain about the deal’s feasibility and transparency.
Despite stock price gains, experts warn that the company’s ability to raise billions is unproven.
Conclusion: Caution Is Warranted
As more micro-cap companies ride the wave of crypto enthusiasm, investors should be alert to unrealistic claims of massive token acquisitions. Without verified funding sources or investor disclosures, these announcements may be more about stock manipulation than legitimate crypto strategies.
Before buying into the hype, verify the fundamentals — not just the headlines.