Four US Firms Invest $844 Million in Cryptocurrencies

On Tuesday, at least four publicly-traded US firms announced significant investments in cryptocurrencies, totaling $844 million. This move underscores the growing interest among corporations in leveraging Bitcoin and other digital assets to enhance their financial strategies.

The most substantial investment came from DDC Enterprise Ltd, a Hong Kong-based heat-and-eat meal seller. The company entered into three purchase agreements totaling $528 million, all of which will be used to expand its Bitcoin holdings. The raise was primarily funded through a $300 million convertible note, a $200 million credit facility, and a $26 million equity investment. Anson Funds, a Dallas-based investment firm, was the largest investor, with the venture capital arm of Animoca Brands also contributing significantly.

DDC Enterprise Ltd aims to build the “world’s most valuable Bitcoin treasury” and has already purchased its first batch of 21 Bitcoin on May 23. The company plans to acquire 5,000 Bitcoin over the next three years, a target that could be achieved with the $528 million secured, based on current prices.

Fold Holdings Inc, the first publicly traded Bitcoin financial services firm, also made a significant move by securing a $250 million equity purchase facility. The net proceeds from this facility are primarily intended to fund additional Bitcoin purchases. The agreement allows Fold to issue and sell up to $250 million in newly issued shares, subject to approval from the Securities and Exchange Commission. If approved, the shares will be sold through a private placement, raising funds by selling securities to private investors instead of through a public market offering. At current prices, $250 million could theoretically purchase 2,390 Bitcoin for Fold, substantially boosting its current treasury of 1,490 Bitcoin.

BitMine Immersion Technologies, a Bitcoin mining equipment rental firm, purchased $16.3 million worth of Bitcoin using proceeds from a recent stock offering. The firm now owns 154.16 Bitcoin, bought at an average purchase price of $106,033. This buy aligns with BitMine's new strategy to increase its Bitcoin holdings through a mix of self-mining and capital raises, reinforcing its commitment to accumulating as much Bitcoin as possible. BitMine had already used some funds from the June 6 offering to buy its first 100 Bitcoin on June 9.

Eyenovia, a Nasdaq-listed biotech firm, also joined the crypto buying action by inking a $50 million private placement to build a reserve for the Hyperliquid (HYPE) token. Eyenovia bills itself as “the first U.S. publicly listed company building a long-term strategic treasury” for the asset. Hyperliquid is a decentralized crypto derivatives exchange built on its own layer 1 blockchain, powered by the HYPE token, which is involved in staking, rewarding active traders with airdrops, and governance activities. Eyenovia plans to acquire over 1 million HYPE, worth $40.1 million at current prices, and stake the tokens on Anchorage Digital’s crypto platform. The firm, which primarily develops digital eye exam tech, will also rebrand to “Hyperion DeFi” under the ticker HYPD. Eyenovia named Hyunsu Jung as chief investment officer and board member to spearhead the company’s crypto strategy, viewing Hyperliquid as one of the fastest-growing, highest-revenue-generating blockchains in the world.

These investments highlight the increasing acceptance and integration of cryptocurrencies into corporate treasury strategies. Companies are recognizing the potential of digital assets to diversify their portfolios and hedge against traditional market risks. The significant investments by these firms indicate a growing trend of corporations embracing cryptocurrencies as a viable asset class, further legitimizing the role of digital currencies in the global financial landscape.