The Los Angeles-based entertainment platform has partnered with ARCA to launch a Bitcoin initiative funded by a $10.2 million capital raise.
LiveOne Inc. (LVO) announced on Thursday that it has taken a “multimillion-dollar” position in Bitcoin (BTC) at an average price of $117,885 per token, as part of a broader plan to integrate digital assets into its treasury strategy.
The Los Angeles-based entertainment platform has partnered with ARCA to launch a Bitcoin initiative funded by a $10.2 million capital raise. It said it has partnered with ARCA to manage Bitcoin yield generation and Anchorage Digital for custody. The board has authorized up to $500 million to expand its holdings.
LiveOne’s stock edged 0.93% lower in midday trade, with retail sentiment on Stocktwits moving higher within ‘neutral’ territory. “This investment in Bitcoin represents a strategic step in our treasury yield strategy and our ongoing belief in digital assets’ long-term potential,” said Chairman and CEO of LiveOne, Robert Ellin.
The company went public in July. As a part of its public offering, the company had announced plans to launch a Bitcoin yield strategy once listed.
The announcement comes after Bitcoin’s price plunged from its record high above $124,000, triggering more than $1 billion in liquidations over the past 24 hours. The apex cryptocurrency fell after July’s producer price index (PPI) inflation report came in hotter than expected, and U.S. Treasury Secretary Scott Bessent said that the country’s Bitcoin Reserve would not involve buying more of the apex cryptocurrency. He stated the reserve would be built using digital assets that the government had already confiscated.
LiveOne’s stock has fallen 58% this year, and more than 60% over the past 12 months.
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