TLDR
- Eightco Holdings stock jumped 3,000% after announcing $270 million fundraise for Worldcoin purchases
- Dan Ives, Wedbush Securities analyst, named chairman while keeping his analyst role
- Company raised funds through private placement at $1.46 per share, stock hit $45.08
- Worldcoin cryptocurrency gained 46% following the investment announcement
- Strategy follows MicroStrategy’s crypto treasury model but trades at 30x book value
Eightco Holdings transformed from a $4.4 million company to an $8.5 billion market cap giant in one weekend. The surge came after announcing plans to buy Worldcoin cryptocurrency.
The company completed a private sale of 185 million shares at $1.46 each. This raised approximately $270 million for the crypto purchase strategy.
Shares closed Monday at $45.08 after trading as high as $83.12 during the session. The stock gained over 3,000% from Friday’s close of $1.45.
Dan Ives from Wedbush Securities was named chairman of Eightco’s board. The prominent Wall Street tech analyst will continue his research role at Wedbush.
Worldcoin Investment Strategy
Eightco plans to use the funding to purchase Worldcoin tokens. Worldcoin is the cryptocurrency project led by OpenAI CEO Sam Altman.
The digital asset jumped 46% in 24 hours following Eightco’s announcement. Worldcoin trades on major exchanges including Crypto.com.
World operates a global biometric identity system. The company scans people’s irises in exchange for Worldcoin tokens.
Over 16 million people have participated in iris scanning over two years. World’s app aims to serve as a global identity verification platform.
Ives called his appointment “the next step in the AI revolution around authentication and Proof of Human.” He emphasized the importance of trust and authentication in the AI era.
Following MicroStrategy’s Playbook
Eightco’s strategy mirrors MicroStrategy’s Bitcoin treasury approach. MicroStrategy has invested $47.2 billion in Bitcoin holdings.
However, Eightco trades at a much higher premium. The company commands roughly 30 times book value compared to MicroStrategy’s 2 times book value.
Several firms participated in the private offering including MOZAYYX and BitMine Immersion. BitMine is chaired by Wall Street strategist Tom Lee.
Fund manager Cathie Wood is an investor in BitMine. The company focuses on long-term crypto accumulation strategies.
Market analysts describe the surge as “market madness.” Mike O’Rourke from JonesTrading noted the “frenzied” nature of current animal spirits.
Market Premium Concerns
O’Rourke pointed out Eightco’s only material assets are the $250 million in sponsor financing. Yet the stock closed with an $8.5 billion market capitalization.
Forward Industries also announced a crypto strategy Monday. That stock jumped 59% to $25.96 on a $1.65 billion Solana investment plan.
In both cases, sponsors now control approximately 98% of the companies. Analysts call this “extreme greed” in current markets.
The trend shows investors paying huge premiums for crypto exposure through equity wrappers. These same digital assets can be purchased directly on exchanges.
Digital asset treasury conversions are now announced weekly or daily. This erodes the scarcity value that once made MicroStrategy unique.
BitMine purchased a $20 million stake in Eightco at the $1.46 offering price. Ives will maintain his coverage of Apple, Tesla, Microsoft and other major tech stocks.
