Ethereum News Today: A Tiny Cap Gambles $2B on a Stablecoin’s Secret to Outsmart Regulation

Mega Matrix Inc., a publicly traded holding company transitioning toward digital assets, has filed a $2 billion shelf registration with the U.S. Securities and Exchange Commission (SEC) to finance a treasury strategy focused on Ethena’s ENA governance token. The move highlights the growing trend among small-cap firms to explore digital asset reserves as a means of generating yield and influencing decentralized finance (DeFi) protocols. The company’s strategy involves accumulating ENA tokens, which are expected to benefit from Ethena’s “fee-switch” mechanism—an on-chain feature that could distribute a share of protocol revenues to token holders once activated [1].

Mega Matrix emphasized that its strategy is “exclusively on ENA,” aiming to concentrate influence and yield within a single digital asset. Unlike traditional fiat-backed stablecoins such as USDC or USDT, Ethena’s synthetic stablecoin, USDe, maintains its dollar peg using a mix of collateral hedged with perpetual futures contracts. This allows the protocol to generate yield from derivatives markets. As of August 2025, Ethena Labs reported that the protocol’s cumulative gross interest revenue had surpassed $500 million. USDe has since become the third-largest stablecoin by market capitalization, reaching $12.5 billion, according to CoinMarketCap [1].

The company’s decision to focus on ENA rather than holding USDe directly aligns with a broader regulatory environment shaped by the U.S. GENIUS Act. The legislation prohibits issuers from paying yield directly to stablecoin holders, inadvertently fueling demand for synthetic yield-bearing alternatives like USDe. Julio Moreno, head of research at CryptoQuant, noted that such restrictions are pushing investors toward yield-bearing or staked stablecoins as viable alternatives [1].

Mega Matrix’s $2 billion shelf registration is notably large for a firm with a market capitalization of just $113 million and first-quarter 2025 revenue of $7.74 million. While the company’s core operations remain centered on FlexTV, a short-form streaming platform, it has increasingly pivoted toward digital asset strategies. The company previously spent $1.27 million to purchase Bitcoin in June 2025, signaling its growing commitment to digital assets [1].

The firm’s move is part of a broader trend among smaller firms diversifying or entirely shifting their treasuries into digital assets. For example, ETHZilla, a former biotechnology company, has built a significant Ether (ETH) portfolio through various funding methods. However, industry experts caution that digital asset treasury strategies carry substantial risks. Josip Rupena, CEO of lending firm Milo, likened the model to collateralized debt obligations, complex financial instruments that contributed to the 2008 financial crisis [1]. He noted the growing complexity of digital asset structures, which can obscure investor exposure and increase systemic risk.

Despite these concerns, the appeal of digital asset treasuries lies in their potential for high returns. Ethena’s revenue model, for example, is driven by staking Ethereum, delta hedging with derivatives, and fixed rewards from liquid stables. As of early 2025, staked Ethereum constitutes just 6% of USDe’s backing assets, while derivatives and fixed stables account for the remainder. Historical funding rates for Ethereum perpetuals have varied significantly, reaching as high as 16% in 2021, though they declined to around 0.6% in 2022 before stabilizing at approximately 9% in 2023 and 13% in 2024 [3].

Mega Matrix’s filing underscores the evolving landscape of corporate treasuries and the increasing integration of DeFi strategies into traditional financial planning. As regulatory frameworks continue to evolve, companies exploring such strategies must balance the potential for yield with the inherent volatility and regulatory uncertainties of the digital asset market [2].

Source: [1] Mega Matrix Files $2B Shelf to Fund Stablecoin Treasury, Ethena’s ENA Governance Token (https://cointelegraph.com/news/mega-matrix-2b-shelf-stablecoin-treasury-ethena-ena) [2] Mega Matrix Files To Issue Up to $2B Shares For ENA Treasury (https://coingape.com/mega-matrix-files-to-issue-up-to-2b-shares-for-ena-treasury/) [3] Protocol Revenue Explanation (https://docs.ethena.fi/solution-overview/protocol-revenue-explanation)