‘Patriotic’ marketplace PSQ soars nearly 40% on digital asset treasury interest

Shares of the small cap PSQ Holdings, whose shareholders include Donald Trump Jr., surged more than 38% yesterday, May 27. The company announced it would explore the possibility of investing its reserves in bitcoin, stablecoins, and other digital assets as a way to diversify its treasury. As CNBC notes, investors are closely watching which major companies adopt cryptocurrencies.

Shares of PSQ Holdings, which operates the PublicSquare marketplace, a fintech, and hygiene product brand EveryLife, jumped over 38% on the New York Stock Exchange yesterday to close at $2.75 per share. This marked the highest close in more than two months.

Yesterday, PublicSquare announced it would explore a strategy to hold digital assets as part of its reserves, including bitcoin, yield-bearing stablecoins, and other cryptocurrencies, to diversify, increase capital efficiency, and align with emerging financial technologies.

The company is also evaluating the integration of stablecoins into its fintech operations, according to founder and CEO Michael Seifert (as quoted in the press release). He said nontraditional payment methods and digital assets will “increasingly and rapidly gain market share in the coming years.”

In recent years, digital assets have evolved from niche investments into recognized financial instruments, PublicSquare noted. Institutional adoption has grown: Bitcoin and crypto ETFs have strengthened the place of digital assets in traditional markets, making them accessible to a broader base of investors. By exploring the use of crypto in its treasury strategy, PSQ aligns itself with other firms that view digital assets as a hedge against inflation and a strategic growth vehicle, the company stated.

In May, another small-cap company, Asian meal producer DayDayCook (DDC), also announced a strategic initiative to hold bitcoin as a reserve asset. A week later, it disclosed the purchase of 21 bitcoins. DDC aims to accumulate 500 bitcoins over the next six months and 5,000 within three years. “The financial system is more fragile than most businesses are willing to acknowledge. Currency risk. Inflation. Asset bubbles. In this environment, holding only fiat isn’t just conservative—it’s potentially detrimental,” wrote DDC founder Norma Chu in a letter published yesterday, May 27, titled “The Bitcoin Manifesto.”

In November, the board of Acurx Pharmaceuticals, a small developer of antibiotics, approved the purchase of up to $1 million in bitcoin as a reserve asset. Bitcoin is inflation-resistant and well suited for storing cash not needed for 12-18 months, said CEO David P. Luci at the time.

However, the first company to adopt bitcoin as a treasury asset was software developer MicroStrategy (now rebranded as Strategy), CNBC pointed out. As of Monday, the company remained the largest corporate holder of bitcoin, with 580,000 tokens, according to bitbo.io. In 2021, Elon Musk’s Tesla followed MicroStrategy’s lead. CNBC says corporate adoption of bitcoin for treasury purposes is a major catalyst for the crypto market, and investors closely monitor which companies start buying bitcoin.

PSQ Holdings is currently trading at about a third of its value as of six months ago. On December 3, the stock soared 270% in a single day to $7.77 per share, after the company announced that Donald Trump Jr. had joined its board.

PSQ Holdings has only two coverage analyst ratings listed on MarketWatch, each being a “buy.” The average target price is $6 per share, implying the stock could more than double from its current level.