Nikolas Sargeant
Electric vehicle manufacturer Faraday Future is implementing a significant strategic pivot toward digital assets, announcing plans to establish a $30 million cryptocurrency treasury alongside innovative tokenized vehicle sales capabilities.
The Nasdaq-listed company revealed its "C10 (Crypto 10) Treasury" initiative on Sunday, marking an ambitious entry into corporate cryptocurrency adoption with stated goals to eventually scale the program "to tens of billions" of dollars in digital assets.
Ian Calderon, Faraday Future's co-creation officer and founding board member of the California Blockchain Working Group, expressed confidence in the timing of this strategic shift, stating the company believes "the next decade could be a super long bull cycle for the crypto market."
This cryptocurrency strategy represents Faraday Future's latest attempt to revitalize its business model after years of operational challenges and production delays in the competitive electric vehicle sector.
C10 Index Targets Top Cryptocurrency Exposure
Faraday Future plans to introduce a proprietary "C10 Index," structured as a market-capitalization-weighted basket comprising the ten largest cryptocurrencies, excluding stablecoins. This diversified approach aims to capture broad cryptocurrency market growth while reducing concentration risk associated with single-asset strategies.
The company has outlined ambitious expansion plans for its digital asset holdings, targeting growth from the initial $30 million investment to between $500 million and $1 billion in cryptocurrency assets over time. Additionally, Faraday Future is exploring the potential launch of an exchange-traded fund (ETF) to provide broader market access to its cryptocurrency strategy.
The treasury structure incorporates staking mechanisms designed to generate passive yields from cryptocurrency holdings. These returns are intended to finance research and development initiatives, potential share repurchase programs, and continued expansion of the company's digital asset portfolio.
Blockchain Integration Extends to Vehicle Sales
In a groundbreaking move connecting cryptocurrency directly to automotive operations, Faraday Future announced the upcoming launch of its "EAI Vehicle Chain" system. This blockchain-based platform will enable tokenized vehicle sales and accept cryptocurrency deposits for vehicle purchases.
The EAI (Embodied AI) framework represents artificial intelligence integration within physical products, specifically targeting enhanced vehicle functionality and user experience capabilities. This technological convergence positions Faraday Future at the intersection of electric vehicles, artificial intelligence, and blockchain technology.
California State Treasurer Fiona Ma endorsed the initiative, describing it as a strategy that could "boost our economy, create high-quality jobs, attract top-tier investment, and advance sustainable development worldwide."
This cryptocurrency pivot occurs as Faraday Future attempts recovery from significant operational setbacks, including the 2016 cancellation of a $1 billion Nevada manufacturing facility and subsequent production delays for its flagship FF91 electric vehicle. As of January, the company had delivered only 16 vehicles and recently shifted toward rebadging Chinese-manufactured vans.
The company also faces regulatory scrutiny, with SEC Wells notices issued in July to founder Jia Yueting and president Jerry Wang following a three-year investigation into alleged misstatements during its 2021 SPAC merger.
