SWC essentially aped Microstrategy (MSTR)’s “bitcoin stacking” strategy, by diluting equity to buy bitcoins.
In doing so, SWC hopes that the market will reward the company with high-priced shares. Sometimes this works; sometimes it doesn’t.
Look at MSTR. Its share prices plummeted by -66% in the second half of 2025! For SWC, as Sheldon pointed out above, its share price decline is even larger than that of MSTR’s.
Investors abandoned the whole treasury asset sector in 2H of 2025 because they felt these digital asset companies (DACs) were overvalued. Why buy DACs when you can buy bitcoins and cryptos directly?
But after such a severe decline, I would not rule out a bounce. The bear trend is extremely oversold and more importantly, bitcoin remains close to $100K despite all the backdrop noise.
All these factors may lead to a sudden rebound in those DACs.
A trade in SWC may be opened. But I do stress that this is just a trade rather than a long-term investment proposition.
