Animoca Brands, a renowned Web3 company, has forged a non-binding memorandum of understanding (MOU) with DayDayCook (DDC) Enterprise, a company known for its meal-prep and packaged food services and its recent adoption of a Bitcoin treasury strategy. The partnership aims to effectively manage Animoca Brands’ Bitcoin holdings, and in the process, generate a yield from these reserves.
In this collaborative agreement, Animoca Brands is set to commit up to $100 million in BTC, as revealed in a shared announcement made last Thursday. Yat Siu, the co-founder and executive chairman of Animoca Brands, shed light on why DDC Enterprise was the chosen partner. He highlighted the CEO of DDC Enterprise, Norma Chu, and her capacity to garner a significant non-crypto audience, thereby bringing the asset sector to the attention of a wider public that may not have previously shown interest in cryptocurrencies.
In Siu’s words, “Norma’s background and her experience uniquely position her to bridge the gap between the East and West, successfully navigating markets on both sides of the globe; she has significant appeal and connections to the Chinese market, a major player for crypto adoption, while also running a NASDAQ-listed company.”
DDC Enterprise unveiled its Bitcoin treasury plans in May, with an ambitious goal to acquire 5,000 BTC over a span of three years. That same month, the company procured 21 BTC for its corporate treasury.
The Bitcoin treasury trend is gathering momentum as more and more corporations are turning to the supply-capped asset as a safeguard against inflation. Some are even transforming their business models to become Bitcoin holding companies. However, this trend has sparked a debate among investors about the impact of these Bitcoin treasury firms on the market.
According to BitcoinTreasuries, there are currently 268 institutions, including public companies, private enterprises, government organizations, asset managers, and crypto firms, that hold BTC on their balance sheets. Public companies represent the largest group of institutional Bitcoin holders, comprising 147 out of these 268 institutions.
Despite the growing popularity and market excitement around BTC treasury options, some market analysts and crypto firms caution that most treasury companies may not survive the next market downturn, and could capitulate as soon as BTC prices start to drop and affordable corporate financing options vanish.
