CaliberCos, a real estate asset manager, has announced the creation of a digital treasury using Chainlink tokens. This decision comes amid challenges in the company's business.
Chainlink as Treasury Asset
On August 28, CaliberCos officially announced the establishment of a digital treasury with Chainlink (LINK) tokens. The company plans to accumulate these tokens for its fund, which it claims will boost investor confidence. Additionally, CaliberCos intends to stake its LINK tokens to enhance returns.
CaliberCos Challenges
CaliberCos's decision to pivot to digital assets is driven by struggles in its core business. Notably, the company received a notice from Nasdaq regarding potential delisting, as it failed to meet the minimum stockholder equity requirement of $160 million. As of June 30, this figure was only $17.6 million.
Market Reaction to Changes
Following the announcement of the digital treasury with Chainlink, CaliberCos's stock surged by 60%. This attracted market attention, despite the fact that the company’s shares have fallen by more than 98% since starting to trade on Nasdaq in July 2023.
CaliberCos's shift to utilizing Chainlink tokens for its treasury highlights the company's strategic changes in an attempt to restore investor confidence and address financial challenges.
