As cryptocurrencies continue to enter corporate treasuries, two Nasdaq companies’ billion-dollar digital asset investments have been met with harsh backlash on the exchange. Singapore-based technology company Trident Digital Tech Holdings (TDTH) and US sports betting platform SharpLink Gaming (SBET) have announced major plans to invest in XRP and Ethereum, respectively. However, both companies’ stock prices have fallen sharply following these announcements.
Trident: XRP treasury dries up, stocks crash
Trident Digital announced in a press release that it aims to purchase $500 million worth of XRP. This investment includes a staking plan as well as the XRP purchase. The company also plans to generate returns on these assets through staking mechanisms and further integrate with the Ripple ecosystem.
The company aims to raise the funds through equity issuance, private placements, and structured finance vehicles. The planned purchases are expected to begin in the second half of 2025. Trident's move shows that it is following in the footsteps of companies such as Webus and VivoPower, which have made room for crypto assets in corporate treasuries.
However, this strategic planning was not received positively by investors. TDTH shares closed the day with a 30.2% decrease following the announcement. The company's total value loss in the last year has exceeded 94%.
SharpLink: $1 billion preparation for Ethereum
On the other hand, sports betting technology company SharpLink Gaming (SBET) also made headlines with its Ethereum-focused treasury plan. The company had announced that it planned to purchase $1 billion in ETH following the $425 million private investment process led by Consensys. However, the company's S-3 application to the US Securities and Exchange Commission (SEC) immediately following these statements was misunderstood in the market.
Investors turned to panic selling, thinking that the filing indicated the resale of millions of shares. As a result, SharpLink shares fell by more than 70% to $8. It later partially recovered and rose above $10.
SharpLink President and Consensys CEO Joseph Lubin stated that this decline was due to a misunderstanding and said, "This is just a technical transaction, no one sold their shares." However, this statement was not enough to restore investor confidence in the short term.
Iran-Israel conflict
The biggest event that deepened the decline of these two stocks may be the Israel-Iran tension. Because, as we reported in the morning, the market has already woken up to a red day today. Israel's air strikes on Iran at night caused fluctuations in global markets. Cryptocurrencies, stocks, Brent crude oil and US-based WTI crude oil prices also collapsed.
