Electric vehicle manufacturer Faraday Future Intelligent Electric's stock price fell nearly 7% on Monday after the company released its second-quarter financial report and announced a multi-billion dollar cryptocurrency reserve plan.
Faraday Future Intelligent Electric (FFAI) saw a brief increase in stock price at the market open on Monday, ultimately closing at $2.58, retracting gains from the previous week, according to data from Google Finance.
The decline occurred the day after the company announced plans to purchase "billions" of dollars in cryptocurrency and had already acquired $30 million worth of cryptocurrency for strategic reserves.
The electric vehicle manufacturer launched the C10 Treasury, an asset basket composed of the top ten cryptocurrencies by market capitalization, excluding stablecoins. Bitcoin accounts for 50% of the fund, while Ethereum makes up 23.7%, ranking second. The company also stated plans to launch an ETF for this product.
The company's cryptocurrency strategy also includes acquiring $500 million to $1 billion in assets from the top ten cryptocurrencies as strategic reserves.
Faraday Future reported lackluster performance for the June quarter, leading to a decline in stock price, although the company remains optimistic about the outlook for the second half of the year.
The company recorded an operating net loss of $48.1 million for the quarter, an improvement from a loss of $50.6 million in the same period last year.
Operating expenses for the quarter were $21.3 million, a 29% decrease year-over-year.
Management stated that the company will continue to maintain financial discipline and roll out electric vehicles as planned.
"In the second quarter, we achieved several important capital market milestones and continued to enhance operational efficiency and cost control," said Matthias Aydt, Co-CEO of Faraday Future.
The company announced that its stock has been included in the Russell 3000 index, which represents the 3,000 largest publicly traded companies in the U.S. by market capitalization.
Despite a brief decline in Bitcoin and the overall cryptocurrency market, publicly listed cryptocurrency reserve companies are continuing to expand their strategic cryptocurrency reserves.
Strategy, as the largest corporate holder of Bitcoin, purchased 430 Bitcoins last week, valued at $51.4 million.
Meanwhile, BitMine Immersion Technologies, as the largest corporate holder of Ethereum, currently has a total Ethereum holding valued at over $6.6 billion, with an additional holding of over 370,000 Ethereum acquired last week.
Related: Cryptocurrency lending platform Figure Technology applies for a U.S. listing
Original article: “Faraday Future Retreats 7% After Sharing Q2 Results and Crypto Plan”
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