Founder rejects claims that Brevan Howard received special treatment in $25M Series B agreement
Berachain is pushing back against reports that one of its key Series B investors, Brevan Howard’s crypto vehicle Nova Digital, secured a year-long right to reclaim its $25 million investment. A recently surfaced side letter raised questions about preferential treatment, but Berachain’s leadership insists the interpretation circulating online is “inaccurate and incomplete.”
Berachain Challenges the Interpretation of the Refund Deal
A report earlier this week suggested that Nova Digital was granted an unusual option to recover “some or all” of its investment during the 12 months following Berachain’s token generation event (TGE). Since the TGE occurred on Feb. 6, 2024, the window — as reported — would extend to Feb. 6, 2026.
However, Berachain’s founder, known pseudonymously as Smokey The Bera, disputes how the agreement has been portrayed. According to Smokey, “Brevan Howard participated on the same Series B paperwork as all other investors,” emphasizing that the deal was not a special concession.
He explained that Nova had approached Berachain months before the fundraising and co-led the round through its Abu Dhabi office using a liquid-only fund structure.
Why the Side Letter Exists
Smokey acknowledged that Nova requested additional terms, but he framed the request as a structural necessity rather than an exclusive advantage.
Nova wanted protection “in a scenario where Berachain failed to TGE and get listed,” he said. Since Nova operates a liquid-only investment strategy, the locked tokens would have been ineligible without a live network.
This requirement led to a side letter designed solely to address the liquidity constraints of the fund.
Smokey added that Nova committed to further commercial obligations in return, including providing liquidity on the Berachain network, an arrangement that could only activate once the blockchain launched.
“This wasn’t about covering post-launch losses or persuading an investor who was hesitant,” Smokey noted, stressing that such provisions “have precedent in similar institutional deals.”
Nova’s Position in Berachain
Smokey emphasized that Nova remains one of the largest tokenholders, holding both locked Series B allocations and additional tokens bought on the open market.
He highlighted that Nova has increased exposure despite a challenging altcoin environment.
The BERA token has dropped 93% from its peak of $14.83, now trading near $1.05. Despite the decline, Berachain maintains that investor participation and liquidity commitments remain intact.
Disclaimer
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