AI Becomes Haven for Crypto Firms Amid Market Downturn
Crypto treasury firms are pivoting to artificial intelligence in an effort to regain investor confidence. Since the crypto market's downturn, many of these firms have seen significant declines in their share prices. For example, K Wave Media saw its shares fall by 71% since rebooting in May, while Lixte Biotechnology Holdings and AlphaTON Capital Corp both dropped 33% after rebranding as AI-related businesses.
The decline in crypto prices has made it difficult for these firms to maintain their business model. Many of them were formed during the peak of the crypto market in 2024, when Strategy's Michael Saylor began accumulating Bitcoin and saw his company's shares soar over 3,000% from 2019 to 2024. However, since then, the shares have tumbled by 81%, and the firm has been selling down its Bitcoin holdings.
Despite the challenges, some firms are trying to adapt to the changing market trends. CoreWeave, a Bitcoin miner that turned to cloud-computing services, now has a market value of $40 billion and its shares have increased by 80% since its initial public offering in March 2025.