Polychain Capital, Kraken, and Blockchain.com have spearheaded a $110 million investment to bolster the treasury of Berachain's BERA token, with participation from firms like North Rock Digital, CitizenX, and dao5. The funding, structured as a private placement in Nasdaq-listed Greenlane Holdings, Inc. (GNLN), aims to establish "BeraStrategy," a new initiative focused on making BERA the company's primary treasury asset.
The transaction comprises approximately $50 million in cash or cash equivalents and $60 million in BERA tokens, highlighting a significant influx of institutional capital into layer-one blockchain projects. BERA serves as the fee token for Berachain, a blockchain that utilizes a "Proof of Liquidity" mechanism, designed to reward validators who contribute liquidity and generate on-chain value.
Ben Isenberg, the incoming Chief Investment Officer of BeraStrategy, emphasized that BERA's yield is fueled by the monetization of block rewards, differentiating it from traditional proof-of-stake chains like Ethereum and Solana. Jonathan Ip, General Counsel of the Berachain Foundation, noted that this move represents a key step in engaging capital markets and institutional participants.
Following the announcement, Greenlane's GNLN stock surged 30% in premarket trading, reflecting market approval. However, the initiative raises questions about maintaining decentralization amid growing institutional involvement.
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