Bitcoin News Today: Faraday Future Allocates $30M to Crypto Treasury Amid EV Struggles

Faraday Future, the Nasdaq-listed electric vehicle startup, has made a striking move by announcing a $30 million initial allocation into a cryptocurrency treasury, dubbed the “C10 Treasury.” The company’s goal is to eventually scale the treasury to tens of billions of dollars, with the intention of leveraging digital assets as a cornerstone of its financial strategy. The initiative includes the creation of a C10 Index, a fund tracking the top 10 cryptocurrencies—excluding stablecoins—and a long-term ambition to launch an ETF [1].

The C10 Treasury will initially allocate $30 million to purchase the top 10 cryptocurrencies, with plans to expand the investment to between $500 million and $1 billion. Staking yields from the treasury are expected to be reinvested into innovation, stock buybacks, and balance sheet growth. Faraday Future also outlined plans for an “EAI Vehicle Chain,” which will facilitate tokenized car sales and crypto-based deposits, signaling a broader integration of blockchain technology into its business model [2].

The move has drawn support from California State Treasurer Fiona Ma, who praised the initiative as one that could foster job creation, attract investment, and contribute to economic growth. Faraday’s co-creation officer, Ian Calderon, noted that the next decade could bring a "super long bull cycle" for the crypto market, suggesting confidence in the long-term potential of digital assets [3].

This decision reflects a broader trend among companies seeking to diversify their treasuries with crypto holdings. Notably, companies like MicroStrategy and Japan’s Metaplanet have previously pursued similar strategies. Metaplanet, for instance, has aggressively accumulated Bitcoin, recently adding 775 BTC to its holdings in a $93 million purchase [4].

Faraday’s pivot into crypto comes amid a challenging period for the firm. Once positioned as a Tesla rival, the company has struggled with limited production and regulatory scrutiny. In July, the SEC issued a Wells notice to its founder, Jia Yueting, and president Jerry Wang, over alleged misstatements linked to a 2021 SPAC merger. The crypto treasury may thus represent both a strategic lifeline and a high-stakes gamble [1].

Despite the company’s optimism, the crypto market remains volatile, and regulatory uncertainty persists. For instance, Bitcoin recently saw a pullback to $115,305 after a brief post-halving rally. Analysts from Cryptopolitan suggest it may consolidate around $105,000 before another upward attempt [4]. Long-term forecasts for 2025 predict a range of $68,000 to $160,000, influenced by potential ETF inflows and U.S. interest rate cuts.

Faraday’s bold strategy underscores a growing intersection between the EV and crypto industries. As companies explore novel ways to manage assets and raise capital, digital currencies are becoming an increasingly viable alternative to traditional financial tools. Whether this approach will succeed for Faraday remains uncertain, but it signals a shift in how emerging technology firms are incorporating digital assets into their financial strategies.

Sources:

[1] https://coindoo.com/ev-startup-shocks-market-with-30m-crypto-treasury-plan/

[2] https://www.ainvest.com/news/faraday-future-launches-30m-crypto-strategy-ev-struggles-2508/

[3] https://www.coinlive.com/news-flash/873233

[4] https://coindoo.com/metaplanet-expands-bitcoin-treasury-while-btc-tests-115k-support/