Mega Matrix, a publicly-exchanged company holding a company that moved to digital assets, filed a $ 2 billion shelf registration with the US Securities and Exchange Commission (SEC) to fund a stablecoin-focused stablecoin-focused strategy, emphasizing how more companies are experimenting with reserves Asset.
The fund is aimed at the Etherna Stablecoin ecosystem, with proceeds directed toward the accumulation of the protocol’s ENA (This one) Token of management. Mega Matrix said the move was designed to give the company exposure to the revenue generated by Ethena’s synthetic stablecoin, USDE, while also securing the influence on protocol management.
In the SEC terms, a shelf registration is a regulatory filing that gives a company to register security for future issuance, allowing it to sell its stock components over time than at all at the same time.
In its announcement, the company emphasized that the approach was focused “exclusively to the ENA, focusing on influence and bear fruit in a single digital possession.”
Instead of handling the USDE directly, the Mega Matrix plan to build a significant position in the ETHENA, which could benefit from Ethen’s “paid-switch” mechanism-an onchain feature that, once activated, distributed a portion of protocol revenues to the ENA holdocol.
The company taught the circular.
It also noted the US Genius Act, which prohibits those who give from payment directly to Stablecoin holders. Especially, restriction is Fueled demand for synthetic, alternative yields Like the USDE by Ethena.
“Certainly because the Genius Act banned those who provided the yield directly to the holders, investors turned to yield stablecoins or staked stablecoins to get yield,” leader of Cryptoquant’s research, Julio Moreno, told Cointelegraph.
The Etherna model differs from traditional fiat-back stablecoins such as USDC (USDC) or USDT (USDT). The USDE is a synthetic stablecoin designed to maintain its dollar peg using a mix of collateral hedged with ongoing contracts with futures. This structure allows the protocol to produce yield from funding rates to derivatives markets.
Although smaller than its collateralized rivals, Ethena’s growth was noticeable. In August, developer Etherna Labs reported that the compiled protocol income has exceeded $ 500 million.
The USDE has since climbed to be the third largest stablecoin in the world, with a market capitalization of $ 12.5 billion, according to CoinMarketCap.
Related: The bank lobby is ‘panicking’ about NYU’s yield-bearing stablecoins-propesor
Digital Asset Treasury companies get traction
The $ 2 billion shelf registration of the Mega Matrix shelf stands as unusually large for a size of its size. The company currently has a market capitalization of nearly $ 113 million, with first-quarter income slipping to $ 7.74 million and net losses that extend to $ 2.48 million. Its main business remains flextv, a short form streaming platform.
Its turn towards Digital Asset Treasury Teasury is not completely unexpected, just coming months after the company spent $ 1.27 million to buy Bitcoin (Btc) in June.
Although, the Mega Matrix is not alone in viewing digital assets as a sheet-sheet approach. Many smaller companies have added cryptocurrencies to their wealth or fully pivoted towards digital asset handling.
One Recent example is Ethzillaa former Biotechnology company that accumulated the road -million dollar amounts of ether (Eth) by a mix of funding techniques. Other companies chasing similar paths are included Bitmine Immersion TechnologiesGaming Sharplink, and Bit Digital.
Despite their growth, digital asset strategies are taking significant risks, according to Josip Rupena, CEO of lending firm Milo. Talking to CointelegraphRupena compared the model to collateralized debt obligations – the complex financial products that played a major role in the financial crisis in 2008.
“There is this aspect where people take what a good sound product, a mortgage back to the sun or Bitcoin and other digital genitals today, for example, and they are starting to engineer with them, taking them in a direction in which the investor is unsure about the exposure they get,” he said.
Related: Firms that produce ETH Treasury are most dangerous: Sharpink Gaming CEO
