New Paradigm of Encryption Vault: Public Companies Transitioning to On-Chain Protocol

Recently, the concept of encryption vaults is undergoing significant changes. It is no longer limited to simple Bitcoin holdings, but is evolving towards a multi-chain layout, native staking, and token dividends new model. This trend marks a silent revolution: traditional financial enterprises are beginning to mimic the operation of blockchain protocols.

This article will focus on one of the most concerning trends in the current encryption market: the phenomenon of PIPE trading and the large-scale allocation of encryption assets by publicly listed companies. 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 "publicly listed companies" and "on-chain native protocols."

PIPE Trading: A Fast Track for Crypto Companies to Go Public

PIPE is the abbreviation for "Private Investment in Public Equity," referring to private investors injecting capital into publicly listed companies at a discounted price. This method is favored for its speed and high flexibility, allowing it to bypass the cumbersome process of traditional IPOs.

Currently, PIPE trading is becoming the preferred method for crypto-native companies to go public quickly or expand their market influence. It is often combined with "reverse mergers," providing a fast track to listing for crypto projects. Companies can avoid lengthy roadshows and repeated negotiations with bankers, quickly becoming a listed entity and gaining global media attention.

Two Iconic Cases

capital operation of a well-known blockchain project

The most striking case comes from the founder of a well-known blockchain project. He renamed the company through a reverse merger with a NASDAQ-listed company and plans to use project tokens worth $100 million instead of cash to complete PIPE financing. This move not only transformed the project tokens into the company's core assets but also hinted at the potential launch of a token-based dividend mechanism in the future.

This transaction involves not only financial operations but also multiple elements of politics, family, and capital. The founder's father is set to become the chairman of the board, and there are rumors that a member of a well-known political family may join the company's executive team. This PIPE transaction showcases the founder's consistent style: keeping up with market trends, replicating popular models, and commercializing them.

The medical company has transformed into a DeFi platform.

Another notable case is a company that originally focused on ophthalmic drug technology transforming into a DeFi platform. This company is transitioning to become the first publicly traded company with a certain token as its primary asset by partnering with an emerging liquidity protocol. They will not only hold a significant amount of this token but also operate native staking verification nodes and actively participate in network development. The company has also hired a new CEO from the encryption field to lead this transformation.

In addition, the company may obtain an additional $100 million in token subscription rights through a second round of PIPE transactions, and if fully exercised, its encryption asset holdings will exceed $150 million. This series of actions occurred within less than a year of the token's launch, making it a "token project that achieved listing configuration the fastest."

Global Trends: From Bitcoin to Multi-Chain Vaults

The trend of publicly traded companies establishing encryption vaults has become global and is no longer limited to Bitcoin.

• In France, a blockchain group holding approximately 1600 bitcoins has become one of the best-performing stocks, with a market value about three times that of its bitcoin holdings.

• In Japan, a company known as "the Japanese version of a well-known encryption investment firm" holds 10,000 bitcoins, and its stock price is nearly 7 times the value of its bitcoin holdings.

• In Hong Kong, a company supported by the founders of a well-known internet enterprise recently incorporated a certain public chain token into its treasury, resulting in a stock price increase of approximately 30%, with the current market value being 222 times the value of its token holdings.

By comparing the net asset value (NAV) multiples of these companies, we can gain insight into the demand for encryption assets in different national markets. For example, the 7x premium of Japanese companies is much higher than the 3x of France, indicating a stronger demand for such investment targets in the Japanese market.

The Importance of New Paradigms

PIPE trading and token vault strategies are no longer just a short-term trend, but rather represent a fundamental shift in the way publicly listed companies are entering the encryption space. We have moved beyond the simple holding of Bitcoin and are witnessing the following key trends:

1. The encryption vault becomes a market signal: Publicly listed companies holding specific tokens is not only financial management but also a market statement and ecological alliance.

2. The rise of token-native listed companies: Treasury assets have expanded from Bitcoin to various emerging public chain tokens, forming a multi-token strategy tied to specific ecosystems.

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

4. Institutions bet on a multi-chain future: Institutional investors are no longer just betting on Bitcoin, but are choosing a diversified layout closely integrated with various ecosystems.

We are witnessing the emergence of a batch of new public companies that operate under the rules of Web3 but perform in traditional financial markets. This is not only a shift in corporate strategy but also an innovation in the operating model of capital markets. In the future, it is likely that every mainstream encryption project will have a corresponding "public representative."

And this is just the beginning.