American biotech company MEI Pharma (MEIP) officially announced on July 22 that it raised 100 million USD, and fully purchased Litecoin (LTC) as its main reserve asset, becoming the first publicly traded company in the U.S. to list LTC as a corporate financial reserve. They also brought in LTC founder Charlie Lee to join the board, with well-known digital asset market maker GSR responsible for LTC reserve management.
Raising 100 million USD to buy LTC, bringing in Charlie Lee to the board, GSR managing reserves.
MEI Pharma's fundraising was conducted in a private placement format at 3.42 USD per share, issuing 29,239,767 shares of common stock (or equivalent warrants), raising a total of approximately 100 million USD, and all the funds raised will be used to buy LTC.
With the completion of the private placement, MEI Pharma has invited LTC founder Charlie Lee to join the board, and well-known market maker GSR has also been hired as MEI's digital asset and reserve management advisor, responsible for the execution of LTC reserve strategies.
Behind this private placement, besides Charlie Lee and GSR, there are also the LTC Foundation and several well-known crypto venture capital firms, such as MOZAYYX, ParaFi, Hivemind, Primitive, RLH Capital, Delta Blockchain, etc.
The image shows Litecoin founder Charlie Lee. What is LTC? It was created to improve BTC transaction efficiency.
Litecoin (LTC) was founded by former Google engineer Charlie Lee in October 2011, making it one of the earlier cryptocurrencies following the introduction of Bitcoin (BTC) in 2009. The key technology of LTC involved modifying the original Bitcoin source code and reducing the block generation time from BTC's 10 minutes to 2.5 minutes, addressing issues such as slow transaction speeds and high fees in BTC.
Due to LTC's fast transaction speeds, low costs, high security, and suitability for everyday small payments, it maintains a certain position in the crypto market. As of the time of writing, LTC's market capitalization has reached 9 billion USD.
Various companies are consecutively imitating MicroStrategy's reserve model, and investors should approach this with caution.
With MicroStrategy driving the trend of listed companies hoarding coins, many companies are increasingly using combinations of stocks and crypto assets to attract investors. However, from past examples, many of these crypto concept stocks have seen astonishing multiples of increase in the early stages, but their prices often spike and plummet sharply with the announcement of news, sometimes triggering trading halts. Investors must pay attention to risk management and approach with caution.
(I'll issue coins, you provide the money; U.S. stock investors take the bait: unveiling the hidden risks of crypto reserve company speculation.)
This article discusses Litecoin reserve company MEI Pharma! Investing 100 million USD to buy LTC, founder Charlie Lee joins the board, first appearing in Chain News ABMedia.
