Eightco Holdings’ 3,000% Rally Sparks “Market Madness” Warnings
Shares of Eightco Holdings (OCTO) exploded from $1.45 to $45.08 on Monday, a staggering 3,009% surge, after announcing a $250 million investment in Sam Altman’s cryptocurrency Worldcoin. The move also saw Wedbush tech analyst Dan Ives named chairman, while BitMine (BMNR) — led by Fundstrat’s Tom Lee — disclosed a $20 million stake at $1.46 per share.
“This is pure frenzy,” said Mike O’Rourke of JonesTrading, noting Eightco’s only real asset is the $250 million financing. Despite that, the company closed with an $8.5 billion market cap. He expects an at-the-market share offering could be next to boost its multiple of net asset value (mNAV).
Eightco wasn’t alone. Forward Industries (FORD) jumped 59% to $25.96 after announcing a $1.65 billion Solana (SOL) investment. In both cases, sponsors now control about 98% of the companies.
“The public’s willingness to pay massive premiums for an equity wrapper around crypto assets they could buy directly is remarkable,” O’Rourke added, calling it a sign of “extreme greed.”
The strategy mirrors Michael Saylor’s MicroStrategy (MSTR) playbook of turning corporate treasuries into crypto bets. But O’Rourke warns that as digital asset conversions become commonplace, the scarcity value that once gave MicroStrategy its edge is quickly vanishing.