Faraday Future Launches $30M Crypto Investment in Top 10 Digital Assets

Faraday Future Intelligent Electric Inc., the struggling Nasdaq-listed electric vehicle startup, has unveiled a $30 million initial investment plan in cryptocurrency as part of a broader digital asset strategy. The company announced its "C10 (Crypto 10) Treasury" product, which will allocate capital to the top 10 digital assets, excluding stablecoins, with ambitions to expand the portfolio to tens of billions of dollars over time [3]. This marks the first phase of what could become a multibillion-dollar investment in the crypto space [2].

The initiative is a core element of Faraday Future's "EAI + Crypto" Dual-Flywheel & Dual-Bridge Ecosystem strategy, which aims to integrate artificial intelligence-driven electric vehicles with Web3 technologies and crypto investments. The company aims to institutionalize its exposure to crypto through index products and potentially exchange-traded funds (ETFs), creating new revenue streams and diversifying its financial model [5].

As part of the plan, Faraday Future is developing the "C10 Index," a market-cap-weighted basket of the top 10 cryptocurrencies, which will serve as a benchmark for institutional investors and as the foundation for future ETF offerings [1]. The firm is also exploring tokenized vehicle sales and crypto-based deposits under its “EAI Vehicle Chain,” a move that aligns with its broader ambition to leverage blockchain technology for asset representation and trading [3].

The initial $30 million commitment is expected to begin next week, with the company targeting an allocation of between $500 million and $1 billion in the next phase. The long-term vision is for the portfolio to scale to $10 billion in value. The C10 Treasury will generate returns through staking yields, which the company says could fund product innovation, stock buybacks, and further asset growth [2].

Despite these ambitions, Faraday Future has faced significant operational and financial challenges in recent years. The company has delayed production of its flagship FF91 model and has reportedly delivered only 16 vehicles to date. Recent reports also indicate that the firm is rebadging Chinese-made electric vans as a way to streamline production [3]. In addition, the company disclosed that the U.S. Securities and Exchange Commission has issued a Wells notice to its founder, Jia Yueting, and president, Jerry Wang, following a three-year investigation into alleged misleading statements made during its 2021 SPAC merger [3].

Faraday Future’s move into crypto comes as the market enters a potentially bullish phase, according to Ian Calderon, co-creation officer and founding board member of the California Blockchain Working Group. He expressed optimism that the next decade could see a long bull cycle in the crypto market [3]. The company has also received support from California State Treasurer Fiona Ma, who praised the plan for its potential to drive economic growth, create jobs, and advance sustainable development [3].

Analysts have not provided specific forecasts on the success of the initiative, but the move reflects a strategic pivot toward the crypto market, which has shown resilience despite recent volatility [4]. The company emphasized that its new strategy will prioritize transparency, compliance, and innovation, as it aims to blend mobility with blockchain applications [3].

The initial $30 million commitment suggests a calculated first step, with the firm indicating that larger investments will depend on the success of the early phase. While the company has not disclosed the specific cryptocurrencies included in the C10 Treasury, the focus on top-tier assets suggests a preference for well-established and liquid digital currencies [6].

By entering the crypto space, Faraday Future aims to position itself at the intersection of emerging technologies. Whether this strategy will stabilize its financial standing or expand its market influence remains to be seen, but the move is a clear indication of the company’s willingness to innovate in multiple sectors.

Source:

[1] Cointelegraph, (https://cointelegraph.com/news/ev-startup-faraday-future-plans-multibillion-dollar-crypto-strategy)

[2] AInvest, (https://www.ainvest.com/news/faraday-future-allocates-30m-top-10-cryptocurrencies-institutional-exposure-2508/)

[3] Blockonomi, (https://blockonomi.com/faraday-future-announces-30-million-initial-crypto-investment-plan/)

[4] StreetInsider, (https://www.streetinsider.com/Corporate+News/Faraday+Future+launches+crypto+treasury+strategy+with+C10+index/25215515.html)

[5] Stock, (https://www.stocktitan.net/news/FFAI/faraday-future-launches-its-eai-crypto-dual-flywheel-dual-bridge-z5n8trubbzi4.html)

[6] Quiver, (https://www.quiverquant.com/news/Faraday+Future+Launches+C10+Treasury+Product+and+C10+Index+to+Enhance+Crypto+Asset+Strategy)