Faraday Future Pivots to Crypto with $30M Treasury Plan

The company plans to to expand its crypto purchases to as much as $1 billion, alongside a market-cap-weighted “C10 Index” and potential ETF. Meanwhile, Dutch firm Amdax unveiled plans for AMBTS B.V., a Bitcoin treasury company on Euronext Amsterdam with the ambitious goal of accumulating 1% of Bitcoin’s supply.

Faraday Future Bets on Crypto

Faraday Future, the Nasdaq-listed electric vehicle startup, announced a sweeping pivot into the cryptocurrency sector to help boost its financial standing and attract new investor interest. The company revealed plans to establish a “C10 (Crypto 10) Treasury” product, beginning with an initial $30 million crypto purchase, with ambitions to grow the fund into the tens of billions over time. The treasury will focus on generating sustainable returns through staking yields, which Faraday said could be reinvested into product development, stock buybacks, and asset growth.

In addition to the treasury initiative, Faraday Future unveiled its “C10 Index,” which is a market-cap-weighted basket of the top ten cryptocurrencies, excluding stablecoins. The company also shared that it is exploring the possibility of launching an exchange-traded fund (ETF) tied to the index. 

Press release from Faraday Future

As part of its strategy, Faraday said it plans to buy between $500 million and $1 billion in cryptocurrencies, building on its initial tranche. This move means that the company wants to align with the growing trend among public firms that are adopting crypto exposure as a way to attract capital and support share performance.

The company is also seeking to integrate blockchain and artificial intelligence into its core automotive operations. It announced plans to launch an “EAI Vehicle Chain” that will facilitate tokenized vehicle sales and crypto-based deposits. EAI, or Embodied AI, refers to artificial intelligence that is embedded directly into real-world objects, like cars. The initiative received an endorsement from California State Treasurer Fiona Ma, who said it could contribute to economic growth, job creation, and sustainable development on a global scale.

The announcement comes as Faraday Future tries to navigate a difficult chapter in its history. The EV maker struggled with production delays and financial instability since stopping construction of a $1 billion Nevada factory in 2016. As of January, the company delivered just 16 vehicles, and more recently it shifted to rebadging Chinese-made electric vans. 

Its founder Jia Yueting and president Jerry Wang are also facing a Wells notice from the US. Securities and Exchange Commission (SEC) after a multi-year fraud investigation into the company’s 2021 SPAC merger.

Faraday Future’s share price over the past 6 months (Source: Google Finance)

Shares of Faraday Future closed down 7.6% at $2.77 on Friday, though the stock still posted a 75% gain over the past six months, leaving it up 14% year-to-date. Despite its rocky past, the company’s latest gamble suggests it is betting on cryptocurrency as a lifeline that could reinvigorate both its finances and its relevance in the competitive EV sector.

Amdax to Launch Bitcoin Treasury Firm

Dutch cryptocurrency service provider Amdax is also preparing to launch a dedicated Bitcoin treasury company on Amsterdam’s Euronext stock exchange. The company announced the creation of AMBTS B.V., a privately held firm with independent governance that will focus solely on accumulating Bitcoin as a treasury reserve asset. Its ambitious goal is to eventually secure 1% of the total Bitcoin supply, which at current prices will require more than $24 billion in capital.

Announcement from Amdax

AMBTS plans to raise funds gradually through the markets to grow its Bitcoin holdings, build equity value, and enhance Bitcoin-per-share metrics for investors. An initial financing round from private investors will kick-start the accumulation strategy. Amdax became the first crypto service provider registered with the Dutch Central Bank in 2020, and was also among the first in the country to secure a Markets in Crypto-Assets Regulation license from the Dutch Authority for the Financial Markets in June.

The firm currently offers trading in 33 cryptocurrencies, alongside automated investing and managed portfolio services. Its CEO, Lucas Wensing, pointed out that more than 10% of Bitcoin supply is now held by corporations, governments, and institutions worldwide, and argued that the time is right for Europe to establish a dedicated Bitcoin treasury company. 

While adoption is still relatively modest across European portfolios, at least 15 companies in the region have already integrated Bitcoin into their balance sheets. These range from Germany’s Bitcoin Group with over 3,600 BTC to smaller holdings by firms across the UK, France, Sweden, and Norway.

Japan’s Metaplanet became a standout in Asia after expanding its Bitcoin reserves to 18,888 BTC valued at around $2.1 billion. Its stock soared by close to 190% this year, far outpacing the broader Tokyo Stock Price Index Core 30.