Shares of Faraday Future Intelligent Electric (FFAI) dropped 7% following the release of its Q2 financial results, coinciding with the announcement of a multi-billion-dollar cryptocurrency reserve.
Q2 Earnings Results
The financial report showed a net loss of $48.1 million, an improvement compared to $50.6 million in losses during the same quarter last year. Total operating expenses were reduced by 29% to $21.3 million. Management expressed confidence in maintaining financial discipline and proceeding with scheduled electric vehicle launches for the rest of the year.
Matthias Aydt, Global Co-CEO, stated, "In Q2, we reached significant capital markets milestones and continued to enhance operational efficiencies and cost controls." The company also disclosed its addition to the Russell 3000 Index, representing the 3,000 largest US-listed companies.
Plan for Crypto Reserves
Faraday Future announced its acquisition of $30 million in crypto assets for its strategic reserve and plans to eventually accumulate cryptocurrency valued in the tens of billions. The company introduced C10 Treasury, a diversified basket comprising the top 10 cryptocurrencies by market cap, excluding stablecoins. Bitcoin makes up 50% of the fund, with Ethereum second at 23.7%. Faraday Future also intends to offer an exchange-traded fund (ETF) based on this portfolio. Overall, the company plans to invest between $500 million and $1 billion in leading cryptocurrencies.
Institutional Interest in Cryptocurrencies
Amid a brief decline in Bitcoin prices and a cooling broader market, institutional crypto treasury holders continued expanding their digital asset reserves. For instance, Strategy, reputed as the largest corporate Bitcoin holder, recently acquired 430 BTC worth $51.4 million. In parallel, BitMine Immersion Technologies, the largest corporate Ether holder, boosted its ETH assets by over 370,000 tokens, reaching a valuation exceeding $6.6 billion.
The decline in Faraday Future's stock amid the financial reporting cycle and the ambitious crypto plan reflects market uncertainty but also highlights the growing institutional interest in strategic cryptocurrency allocation.
