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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.
Less than a year ago, a wave of struggling pharma companies pulled the same move with crypto. Most of those stocks have since collapsed.
From Dead Shoe Brand to 700% Market Frenzy in a Single Day
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.
“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.
Following the news, Allbirds’ stock, BIRD, rallied by over 700%, with prospects for more gains as rising demand continues to clear each local top.
Allbirds (BIRD) Stock Performance. Source: TradingView 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.
Against this backdrop, analysts noted the disconnect between the stock move and the underlying business.
“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.
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.
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.
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.
Solana Company (HSDT), Nakamoto (NAKA), and Lite Strategy (LITS) Price Performance. Source: TradingView Same Hype, Different Label
Master Ventures founder Kyle Chassé called it the “AI effect,” suggesting this may only be the beginning.
“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.
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.
With crypto treasuries, the pop faded once markets demanded actual execution.
AI compute demand is real, but so was demand for Bitcoin, Ethereum, and Solana (SOL).
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.
“I wish the Allbirds people luck in their attempt to pivot to GPUs. Maybe they can do it. But i regard this as the first definitive sign that things have gone too far. What a bunch of jokers and mountebanks they are,” wrote Jim Cramer.
The post Allbirds Stock Rallies 700% On AI Pivot, But Mirrors Failed Crypto Treasury Plans appeared first on BeInCrypto.
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