Crypto Firms Abandon Ship, Chase Artificial Intelligence Boom

Financially struggling public companies that once focused on accumulating cryptocurrencies are turning to artificial intelligence (AI) as the crypto market cools. At least a dozen digital-asset treasury firms have shifted into AI-related ventures in recent months, according to Bloomberg. The move comes as token prices and company valuations decline.

Companies such as K Wave Media, which once focused on accumulating Bitcoin, have seen significant declines since turning toward data center development in May. Lixte Biotechnology has lost 33% since agreeing to merge with a battery company in June, while Alphaton Capital is down 33% since rebranding as Alpha Compute in April.

Industry observers reckon that most digital-asset treasury firms are either moving into AI or dying a slow death. The collapse of the crypto treasury trade has pushed companies to explore other areas, including data centers, space businesses, and small nuclear reactors.