by Coinstrooper Crypto Articles
Quick Take
  • Allbirds (BIRD) stock gained over 700% on April 15 after the company announced it would ditch footwear entirely and pivot to AI compute infrastructure.
  • Less than a year ago, a wave of struggling pharma companies pulled the same move with crypto.
  • Allbirds, once valued at $4 billion after its 2021 IPO, sold its shoe brand to American Exchange Group for just $39 million in March.
  • Following the news, Allbirds’ stock, BIRD, rallied by over 700%, with prospects for more gains as rising demand continues to clear each local top.

What Happened

Allbirds (BIRD) stock gained over 700% on April 15 after the company announced it would ditch footwear entirely and pivot to AI compute infrastructure. The playbook may look familiar.

“NewBird AI expects to use initial capital from the Facility to acquire high-performance GPU assets, which will be deployed to serve customers requiring dedicated access to AI compute capacity,” read an excerpt in the press release.

Each stock spiked on the announcement. The aftermath tells a different story. Helius Medical traded near $25 at its peak and now sits around $2.31.

“This is the AI effect. Allbirds announced their switch from shoes to AI and then shot up 700% in a single day. It wouldn’t be surprising if other companies started pulling the same moves,” Chassé suggested.

Market Context

From Dead Shoe Brand to 700% Market Frenzy in a Single Day

“Feels like the market is rewarding what you could be not what you are … Nothing changed operationally overnight. Just the story. Shoes → dead. AI → alive,” analyst Kyle Doops remarked.

Nakamoto has fallen to $0.22 and is pursuing a reverse stock split to avoid Nasdaq delisting. Lite Strategy trades at $1.10 with a market cap of roughly $40 million.

With crypto treasuries, the pop faded once markets demanded actual execution.

Whether NewBird AI breaks the pattern or follows it may depend on whether $50 million is enough to compete in a market dominated by hyperscalers spending billions.

Why It Matters

It is imperative to note, however, that the company has no track record in hardware, data centers, or cloud services. Both deals still require stockholder approval at a May 18 special meeting.

Master Ventures founder Kyle Chassé called it the “AI effect,” suggesting this may only be the beginning.

Details

Less than a year ago, a wave of struggling pharma companies pulled the same move with crypto. Most of those stocks have since collapsed.

Allbirds, once valued at $4 billion after its 2021 IPO, sold its shoe brand to American Exchange Group for just $39 million in March.

The remaining shell secured a $50 million convertible financing facility and plans to rebrand as NewBird AI, leasing GPUs to developers facing compute shortages.

Following the news, Allbirds’ stock, BIRD, rallied by over 700%, with prospects for more gains as rising demand continues to clear each local top.

Against this backdrop, analysts noted the disconnect between the stock move and the underlying business.

Crypto Tried This First

In 2025, at least four medical firms abandoned their core businesses to become crypto treasury companies.

Helius Medical rebranded as Solana Company and raised $500 million for a SOL treasury.

Kindly MD merged with Nakamoto Holdings to hold Bitcoin (BTC).

MEI Pharma became Lite Strategy, adopting Litecoin (LTC) as its reserve asset.

Same Hype, Different Label

The pattern is consistent. A company with a failing core business sells its operations, attaches itself to the hottest narrative, and watches its stock pop.

AI compute demand is real, but so was demand for Bitcoin, Ethereum, and Solana (SOL).