Companies Claiming Crypto Treasuries: A Skeptical Look

Some small companies with very low market value are suddenly claiming they will buy large amounts of XRP and Solana during the current crypto bull run. Although these announcements sound significant, they are raising serious doubts. Most of these companies lack strong ties to the crypto industry and have limited financial backing.

Recently, Singapore-based Trident Digital Tech announced plans to raise $500 million to build a massive XRP treasury, despite having a market cap of just $16 million and shares trading under $0.40 on Nasdaq.

> VanEck: $XRP, $SOL treasury plans by micro caps likely scams. VanEck’s Head of Digital Assets, Matthew Sigel, warns that recent XRP and Solana treasury announcements by low-cap Nasdaq firms are likely “pump and dump” schemes. Companies like Trident Digital and Classover…
> — CoinNess Global (@CoinnessGL) June 13, 2025

Matthew Sigel believes these moves are attempts to artificially boost the stock prices of small companies.

Penny Stocks to Crypto Giants? VanEck Doubts It

He suggests that many of these announcements are insider-driven pump-and-dump schemes, where insiders hype up news to inflate the stock price, then sell their shares for profit before a crash occurs.

> “Insider pump and dump attempts—many of them. If the market cap is de minimis and there is no disclosure of new anchor investors, I assume it’s a scam,” he said.

In a recent X post, Sigel highlighted Addentax Group, a China-based clothing company with a market cap of just a few million dollars, which claimed it would buy $800 million worth of Bitcoin and TRUMP coin. He blurred the ticker, cautioning followers not to take such claims seriously.

> When a $3M market cap US-listed penny stock with all Chinese management announces plans to buy $800M of BTC & TRUMP coin, you don’t post the ticker. pic.twitter.com/TbwGT8bSU4
> — Matthew Sigel, recovering CFA (@matthew_sigel) May 15, 2025

DeFi Dev Corp Joins the Treasury Craze

Earlier this month, Classover Holdings—an ed-tech firm with shares under $4 and a market cap below $100 million—announced plans to raise $500 million for a Solana treasury. Similarly, China’s Webus International, also with a market cap under $100 million, revealed plans to build a $300 million XRP treasury.

DeFi Development Corp. is taking the crypto treasury trend further. It announced a deal to sell up to $5 billion worth of its shares to build a Solana treasury. Unlike others, the company claims this is its primary business focus.

While the announcement boosted its stock, many doubt the firm can raise that amount. Just a few months ago, its market cap was $7 million; now, it stands around $379 million. Sigel believes these small firms are attempting to mimic Michael Saylor’s Bitcoin playbook, but without any real financial backing.