Understanding Brevan Howard’s Refund Right

The refund right implies that Brevan Howard could potentially reclaim its investment following Berachain’s token generation event held on February 6. Co-leading the project’s $69 million funding round at a $1.5 billion valuation, Brevan can exercise this right until February 6, 2026.

Implications of a Near-Zero Risk Strategy

This refund clause signifies a deviation from traditional venture investments, as Brevan’s fund is not exposed to the typical risks associated with principal investments. If Berachain’s BERA token performs well, Brevan will benefit from the gains. Conversely, if the token underperforms, Brevan has the option to retrieve its initial investment. Currently, BERA is trading around $1, down 67% from Brevan’s investment price of $3 per token, with a fully diluted valuation of $536.7 million.

Collaborative Efforts in Series B Funding

The Series B round was co-led with Framework Ventures, with additional contributions from Arrington Capital, Hack VC, Polychain, and Tribe Capital. Berachain previously raised $42 million in a Series A round in 2023. It remains uncertain whether other investors were granted similar refund rights.

The Role of Nova Digital

As part of a simple agreement for future tokens (SAFT) arrangement, Nova Digital, led by Kevin Hu—a BlackRock and Dragonfly Capital veteran—was required to deposit $5 million into Berachain within 30 days post-TGE. Kevin Hu had previously invested in Berachain’s seed round, and Brevan acquired the Nova Digital Master Opportunities Fund from Dragonfly in 2023.

Berachain, built on the Cosmos SDK and Ethereum-compatible, was one of the most anticipated blockchain launches of 2025, stemming from the 2021 NFT series “Bong Bears” which quickly amassed a devoted following.

The Block reached out to Berachain and Brevan Howard Digital for comments. The Block, a separate media entity, continues to provide independent, impactful, and timely crypto industry news, with Foresight Ventures as a majority investor.

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