Crypto Companies Abandon Ship for Artificial Intelligence

Companies that built their businesses around holding cryptocurrencies on their balance sheets are shifting towards artificial intelligence (AI) as digital asset prices decline. Several former crypto treasury companies have rebranded or announced moves into AI-related businesses, including data center development and computing infrastructure.

K Wave Media Ltd., for example, shifted from accumulating Bitcoin to developing data centers after its share price slumped by 71% since announcing its strategic reset in May. Lixte Biotechnology Holdings Inc. has dropped 33% since agreeing to merge with a battery company in June, while AlphaTON Capital Corp., formerly focused on alternative cryptocurrencies, has fallen 33% after rebranding as Alpha Compute Corp. in April.

The trend extends beyond former crypto treasury companies. Technology giants including Alphabet, Microsoft, OpenAI, and Anthropic are investing heavily in AI infrastructure, fueling demand for servers, storage devices, memory chips, and data center capacity. Nearly all of the top 10 performers in the S&P 500 this year manufacture products used in data centers.

Not all legal advisers believe investor interest in blockchain technology has disappeared. Daniel Forman, a partner at Lowenstein Sandler LLP, told Bloomberg there continues to be demand for other blockchain-related businesses even as enthusiasm for the digital-asset treasury model has faded.