Next-generation blockchain project Berachain (BERA) has granted an unusual “right of redemption” on its $25 million Series B investment to Nova Digital fund under Brevan Howard Digital, according to recent disclosures. This clause allows the fund to reclaim its investment within one year of Berachain’s token generation event (TGE), which occurred on February 6, 2025, with a deadline of February 6, 2026.
The BERA token is currently trading at approximately $1, about 67% below the investment price of $3, making the redemption option financially attractive for Brevan Howard. However, token allocations are subject to a one-year lockup period, meaning Nova Digital would forfeit its token rights if it exercises the refund.
Berachain, which emerged as a bear-themed NFT project in 2021, has raised at least $142 million in venture capital, with a token valuation reaching $1.5 billion in its latest funding round co-led by Framework Ventures and Brevan Howard's Nova Digital fund. The involvement of traditional financial giant Brevan Howard was seen as lending credibility, with an anonymous founder quoted as saying it would “legitimize” the project.
Legal experts have raised concerns, noting that such redemption rights are highly unusual in the cryptocurrency industry and typically reserved for cases where a project fails to launch a token. The critical debate centers on whether this clause was disclosed to other investors, potentially violating securities laws and creating equity issues.
