Luxxfolio files $73M crypto prospectus to expand Litecoin treasury investment strategy

Luxxfolio, the Canadian digital infrastructure company, wants to raise up to CAD$100 million (roughly $73 million) via a shelf prospectus to fatten up its Litecoin treasury just months after overhauling its business model and moving away from Bitcoin mining.

According to a statement issued by the company on Aug. 28, once the filing has been approved, it will allow Luxxfolio to offer and issue “up to an aggregate of CAD$100,000,000 of common shares, preferred shares, debt securities, warrants, subscription receipts, units, or any combination thereof.”

The nature of the offering makes it so that Luxxfolio will have the option to issue the securities periodically over a 25-month period instead of a one-time offering. Strategically, this would allow it to time its capital raises based on market conditions, investor appetite, and project milestones.

“This base shelf prospectus positions Luxxfolio to act quickly on strategic opportunities as we pursue our mission to drive global adoption of Litecoin as hard currency,” Tomek Antoniak, CEO and Director of Luxxfolio, said in an accompanying quote.

If approved, a portion of the funds raised has been earmarked for “Litecoin (LTC) infrastructure and treasury programs.” The rest of the funds would be diverted towards other growth initiatives and advanced strategic investments.

“In our sector, scale is critical — the larger our treasury, infrastructure, and ecosystem footprint, the greater our ability to capture market share and influence adoption,” Antoniak added.

The announcement drew a muted response from investors, as Luxxfolio’s stock closed the day down 3.57%, though it is still up 28.57% over the past month.

How Luxxfolio became a Litecoin-first cryptocurrency treasury company

Luxxfolio, formerly known as AX1 Capital Corp., originally operated as a Bitcoin miner before completely overhauling its business model earlier this year to become a Litecoin-first infrastructure and treasury company.

It first announced plans officially in March when it disclosed an initial purchase of 4,982 LTC for the treasury. Subsequently, in June, Litecoin creator Charlie Lee joined the company’s advisory board. 

By July, that treasury was holding 20,084 LTC while boasting a Litecoin-per-share yield of roughly 151.6%. Luxxfolio uses this metric to highlight the depth of its treasury relative to outstanding shares.

At the time, the company said it views Litecoin as a “core building block of its infrastructure-focused business model” rather than just a long-term reserve asset.

However, like many of the crypto treasury companies that have emerged of late, Luxxfolio’s move into the crypto treasury trend may have stemmed from necessity as much as conviction.

Per data from its latest quarterly financials, the company reported no revenue and a net loss of nearly $197,000 for the second quarter, and just $112,000 in cash on hand, forcing it to rely on a private placement to stay afloat.

Corporate cryptocurrency treasury: Litecoin as investment asset

Luxxfolio is not the only company that has taken an interest in Litecoin in recent months. Nasdaq-listed biotech firm MEI Pharma made headlines in July when it disclosed a $100 million commitment to a dedicated Litecoin treasury strategy.

As a part of the initiative, the Litecoin Foundation took a direct equity stake in MEI Pharma, while Lee joined the company’s board of directors.

Fast forward to August, MEI announced it had acquired 929,548 Litecoin against an approximately $110.4 million investment. 

Litecoin was also included in Thumzup Media Corporation’s $250 million treasury plan, disclosed in July, alongside Bitcoin, Ethereum, Solana, XRP, Dogecoin, and USDC.