Crypto Journalist
Amin Ayan
Crypto Journalist
Amin Ayan
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Electric vehicle startup Faraday Future is pivoting toward digital assets with plans to build a $30 million crypto treasury and explore tokenized vehicle sales.
Key Takeaways:
- Faraday Future will launch a $30M crypto treasury and aims to expand holdings up to $1B.
- The EV firm plans tokenized car sales through its upcoming “EAI Vehicle Chain.”
- Shares are volatile, but the stock is still up 75% in the past six months.
The Nasdaq-listed firm said on Sunday it will launch a “C10 (Crypto 10) Treasury” product, initially investing $30 million in crypto with ambitions to scale it “to tens of billions.”
Ian Calderon, Faraday Future’s co-creation officer and a founding board member of the California Blockchain Working Group, said the company believes the “next decade could be a super long bull cycle for the crypto market.”
Faraday Future Unveils C10 Index to Track Top 10 Cryptos
Faraday Future said it will introduce a “C10 Index,” a market-cap-weighted basket of the top 10 cryptocurrencies, excluding stablecoins.
The company is also exploring the launch of an exchange-traded fund (ETF) and intends to expand its holdings to between $500 million and $1 billion in digital assets.
The treasury is designed to generate returns through staking yields, which the company says can help finance innovation, potential stock buybacks, and further asset growth.
In a move that connects crypto directly to its automotive business, Faraday Future announced the upcoming launch of an “EAI Vehicle Chain.”
The system will support tokenized car sales and deposits in cryptocurrency. EAI, or Embodied AI, refers to artificial intelligence integrated into physical products such as vehicles.
California State Treasurer Fiona Ma endorsed the plan, calling it a strategy that could “boost our economy, create high-quality jobs, attract top-tier investment, and advance sustainable development worldwide.”
The crypto push comes as Faraday Future attempts to reset after years of setbacks. The company scrapped a $1 billion factory in Nevada in 2016, delaying production of its flagship FF91 EV.
As of January, it had delivered only 16 vehicles and recently shifted to rebadging Chinese-made vans.
Faraday Future also disclosed in July that the SEC issued Wells notices to its founder Jia Yueting and president Jerry Wang following a three-year probe into alleged misstatements during its 2021 SPAC merger.
Shares in Faraday Future (FFAI) closed at $2.77 on Friday, down 7.6% for the day but still up 75% in the past six months, leaving year-to-date gains at 14%, according to Google Finance.
Companies Expand Bitcoin Holdings
Last week, Thumzup Media Corporation, a social media marketing firm that pivoted into crypto investments earlier this year, announced plans to ramp up its digital asset strategy following a $50 million capital raise.
Thumzup’s expansion reflects a broader trend of public companies boosting their crypto treasuries.
Stockholm-based health technology firm H100 Group revealed Wednesday ithad purchased an additional 45.8 BTC, bringing its total to 809.1 BTC.
H100 said it paid an average of under 1.14 million Swedish krona ($119,090) per Bitcoin, for a total outlay of 52.18 million krona ($5.47 million).
The purchase ranks H100 as the 42nd largest public company Bitcoin holder globally and the fourth largest in the EU, trailing Germany’s Bitcoin Group SE, which holds 3,605 BTC, according to BitcoinTreasuries.net.
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