Shares of real estate asset manager Caliber, traded on Nasdaq, surged following the announcement of its transition to a Chainlink treasury, despite an ongoing probe by the exchange.
In a Thursday announcement, Caliber’s board disclosed its approval to develop a digital asset treasury strategy centered on Chainlink (LINK). As per the new directive, the firm plans to allocate some of its capital to procure LINK tokens.
A crypto advisory board has also been appointed to direct management on digital asset strategies, policies, and related undertakings. Market observers have responded positively, with data from Google Finance indicating that the company’s stock climbed by 77% during pre-market trading and managed to hold this value into the day’s early trading session.
Caliber stock one-day price chart. Source: Google Finance
This increase occurred despite Caliber reporting that it received a notice from Nasdaq on Wednesday stating it is “no longer in compliance with Nasdaq Listing Rule 5550(b)(1).” Establishing a treasury for Chainlink may be a strategy to address this issue before being delisted.
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Why Caliber faces Nasdaq delisting
The rule under scrutiny mandates companies maintain a stakeholder equity of at least $2.5 million to remain listed on the exchange. The company has a 45-day window to propose a plan, and if accepted, it has up to 180 days to rectify this deficiency.
A Securities and Exchange Commission filing from this year’s second quarter revealed that Caliber had a stockholders’ equity deficit of $17.6 million. Failure to resolve this gap will result in the loss of its publicly traded status. If Caliber successfully raises funds for its newly established Chainlink treasury, it may regain compliance with listing requirements.
Related: Are struggling firms using crypto reserves as a PR lifeline?
The rise of corporate altcoin treasuries
Following the creation of the inaugural Bitcoin (BTC) treasury by Strategy, previously known as MicroStrategy, the focus of corporate crypto treasuries initially centered on Bitcoin. However, an increasing number of firms are now directing their treasury efforts toward altcoins.
This week, Trump Media and Technology Group, owner of Donald Trump’s Truth Social platform, announced the launch of the Trump Media Group CRO Strategy to build a treasury of at least $6.42 billion in Cronos (CRO). Similarly, Sharps Technology’s shares nearly doubled on Monday after announcing a $400 million Solana (SOL) treasury.
Nevertheless, success is not guaranteed for these companies. Earlier this month, Windtree Therapeutics, which set up a BNB treasury strategy last month, plummeted 77% on Wednesday after Nasdaq indicated it would be delisted.
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