A New Paradigm of Encryption Vaults from PIPE Transactions

Encryption vaults are undergoing a revolutionary transformation. They are no longer limited to simply holding Bitcoin, but are beginning to delve into multi-chain ecosystems, participating in native staking and token dividends. This new paradigm is blurring the lines between traditional listed companies and crypto-native protocols.

PIPE transactions (Private Investment in Public Equity) are becoming the preferred way for crypto-native companies to enter the public market. It is often combined with reverse mergers, providing a fast-track route to listing for projects, bypassing the cumbersome process of traditional IPOs.

Two striking cases illustrate this trend:

1. The founder of Tron renamed the company to Tron Inc through a reverse merger with a Nasdaq-listed company, and plans to complete PIPE financing with $100 million worth of TRX tokens. This not only turns TRX into the company's core asset but also hints at the future possibility of launching a dividend mechanism based on TRX.

2. Eyenovia is transforming into Hyperion DeFi, aiming to become the first publicly listed company with HYPE tokens as its primary asset. They will not only hold a large amount of HYPE tokens but also run validation nodes and actively participate in network construction.

In addition, Lion Group plans to allocate up to 600 million USD in multi-chain token assets, with HYPE becoming one of the core assets. This "multi-currency treasury" strategy is becoming a new paradigm for corporate asset allocation.

This trend has spread globally:

• The Blockchain Group of France holds approximately 1600 BTC
• MetaPlanet in Japan holds 10,000 bitcoins.
• Hong Kong's MemeStrategy recently added Solana to its treasury.

By comparing the net asset value multiples of these companies, we can gain insight into the demand for encryption assets in different markets.

This transformation means:

1. The encryption vault becomes a market signal, representing the company's support for a specific ecosystem.
2. The rise of native token listing companies, forming a multi-token strategy bound to specific ecosystems.
3. PIPE transactions have become the standard path for encryption companies to enter the public market.
4. Institutional investors are starting to bet on a multi-chain future, no longer limited to Bitcoin.

We are witnessing the emergence of a new batch of listed companies. They follow the operational rules of Web3 but perform on the stage of traditional capital markets. This is not only a shift in corporate strategy but also a profound transformation of the operating paradigm of the capital market.