Faraday Future Intelligent Electric (FFAI) saw its stock price tumble nearly 7% on Monday, closing at $2.58, following the release of its second-quarter earnings report. The decline erased a week’s worth of gains, even as the company revealed ambitious plans to build a multibillion-dollar cryptocurrency reserve.
Just a day before reporting earnings, Faraday Future announced the launch of its C10 Treasury, a digital asset fund comprising the top 10 cryptocurrencies by market capitalization, excluding stablecoins.
- Bitcoin makes up 50% of the basket.
- Ethereum holds 23.7%.
- The company plans to expand its reserves by buying between $500 million and $1 billion worth of crypto assets.
Faraday Future also confirmed it has already purchased $30 million in crypto for its strategic reserve and is exploring the launch of an ETF tied to the C10 Treasury.
This aggressive crypto strategy positions the EV maker alongside other firms building significant digital asset treasuries, underscoring rising institutional demand for Bitcoin and Ethereum.
Q2 Earnings Overview
Despite the bold crypto announcement, the company’s financial results for the June quarter weighed on investor sentiment:
- Net loss: $48.1 million (slightly better than last year’s $50.6 million).
- Operating expenses: $21.3 million, down 29% year-over-year.
- Added to the Russell 3000 Index, which tracks the largest 3,000 U.S. publicly traded firms.
While the earnings reflected continued losses, management emphasized stronger cost controls and efficiency improvements.
“In the second quarter, we achieved several notable capital markets milestones and also continued to strengthen our operating efficiencies and cost control measures,” said Matthias Aydt, Global Co-CEO of Faraday Future.
Market Reaction and Industry Context
The stock’s decline reflects investor caution despite optimism about the company’s crypto strategy and EV rollout plans. Faraday Future’s move echoes similar actions by leading crypto-treasury firms:
- Strategy, the largest corporate Bitcoin holder, recently purchased 430 BTC worth $51.4 million.
- BitMine Immersion Technologies, the biggest corporate Ethereum holder, now owns over $6.6 billion in ETH, after buying 370,000 ETH last week.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.