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Mega Matrix, a publicly listed holding entity that has transitioned into digital assets, submitted a $2 billion shelf registration with the US Securities and Exchange Commission (SEC) to finance a stablecoin-centric treasury approach, highlighting how numerous companies are exploring digital asset reserves.
The financing is intended for the Ethena stablecoin ecosystem, with funds allocated for acquiring the protocol’s ENA (ENA) governance token. Mega Matrix stated that this initiative aims to provide the firm with a stake in revenue generated by Ethena’s synthetic stablecoin, USDe, while simultaneously securing authority over the protocol’s governance.
In SEC terminology, a shelf registration is a regulatory document that allows a corporation to register securities for future issuance, enabling it to sell sections of its stock over time instead of all at once.
In its statement, the firm stressed that the plan is centered “solely on ENA, emphasizing influence and yield in a singular digital asset.”
Instead of directly holding USDe, Mega Matrix intends to establish a substantial position in ENA, which may benefit from Ethena’s “fee-switch” feature — an onchain capability that, when initiated, allocates a portion of protocol revenues to ENA holders.
The company referenced the rapid expansion of Circle, a prominent stablecoin issuer, and the increase of digital asset treasury strategies as motivators for its Ethena-focused strategy.
It also mentioned the US GENIUS Act, which forbids issuers from directly paying yield to stablecoin holders. Ironically, this limitation has heightened interest in synthetic, yield-bearing alternatives such as Ethena’s USDe.
“Exactly because the GENIUS act prohibited issuers from directly offering yield to holders, investors are shifting towards yield-bearing stablecoins or staked stablecoins to acquire yield,” CryptoQuant’s research head, Julio Moreno, informed Cointelegraph.
Ethena’s framework differs from conventional fiat-backed stablecoins like USDC (USDC) or USDt (USDT). USDe is a synthetic stablecoin crafted to uphold its dollar peg through a combination of collateral secured with perpetual futures contracts. This configuration allows the protocol to derive yield from funding rates in derivatives markets.
Although still smaller than its collateralized competitors, Ethena’s expansion has been notable. In August, developer Ethena Labs announced that the protocol’s total gross interest revenue had exceeded $500 million.
USDe has since ascended to become the world’s third-largest stablecoin, with a market capitalization of $12.5 billion, according to CoinMarketCap.
Related: Bank lobby is ‘panicking’ about yield-bearing stablecoins — NYU professor
Digital asset treasury firms are gaining momentum
Mega Matrix’s $2 billion shelf registration stands out as particularly substantial for a company of its magnitude. The firm currently has a market capitalization of around $113 million, with first-quarter revenue declining to $7.74 million and net losses expanding to $2.48 million. Its main focus remains FlexTV, a short-form streaming service.
Its shift toward digital asset treasury strategies was somewhat anticipated, occurring only months after the company invested $1.27 million in Bitcoin (BTC) in June.
Nonetheless, Mega Matrix is not alone in seeking digital assets as a balance-sheet strategy. Numerous smaller companies have either incorporated cryptocurrencies into their treasuries or shifted completely towards digital asset holdings.
One recent instance is ETHZilla, a former biotech firm that has amassed hundreds of millions of dollars’ worth of Ether (ETH) through a variety of funding strategies. Other firms on similar trajectories include BitMine Immersion Technologies, SharpLink Gaming, and Bit Digital.
Despite their growth, digital asset treasury strategies pose considerable risks, according to Josip Rupena, CEO of lending firm Milo. In conversation with Cointelegraph, Rupena likened the model to collateralized debt obligations — the complex financial instruments that were pivotal during the 2008 financial crisis.
“There’s this element where individuals take what is a fairly sound product, a mortgage back in the day or Bitcoin and other digital assets today, for example, and they begin to manipulate them, leading them down a path where the investor is unclear about the exposure they’re obtaining,” he remarked.
Related: Yield-chasing ETH treasury firms are most at risk: Sharplink Gaming CEO
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