Luxxfolio, the Canadian digital infrastructure company, wants to raise up to CAD$100 million (roughly $73 million) via a shelf prospectus to fatten up its Litecoin treasury just months after its business model was overhauled and it moved away from Bitcoin mining.
According to a statement issued by the company on August 28, once the filing has been approved, it will allow Luxxfolio to offer and issue “up to an aggregate of CAD$100,000,000 of common shares, preferred shares, debt securities, warrants, subscription receipts, units, or any combination thereof.”
Luxxfolio Aims to Raise $73M to Expand Its Litecoin Treasury
The nature of the offering makes it so that Luxxfolio will have the option to issue the securities periodically over a 25-month period instead of a one-time offering. Strategically, this would allow it to time its capital raises based on market conditions, investor appetite, and project milestones.
“This base shelf prospectus positions Luxxfolio to act quickly on strategic opportunities as we pursue our mission to drive global adoption of Litecoin as hard currency,” was said by Tomek Antoniak, CEO and Director of Luxxfolio, in an accompanying quote.
If approved, a portion of the funds raised has been earmarked for Litecoin (LTC) infrastructure and treasury programs. The rest of the funds would be diverted toward other growth initiatives and advanced strategic investments.
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“In our sector, scale is critical — the larger our treasury, infrastructure, and ecosystem footprint, the greater our ability to capture market share and influence adoption,” was added by Antoniak.
The announcement drew a muted response from investors, as Luxxfolio’s stock closed the day down 3.57%, although it is still up 28.57% over the past month.
From Bitcoin Miner to Litecoin Leader: Luxxfolio’s Strategic Shift
Luxxfolio, formerly known as AX1 Capital Corp., originally operated as a Bitcoin miner before its business model was completely overhauled earlier this year to become a Litecoin-first infrastructure and treasury company.
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Plans were first officially announced in March when an initial purchase of 4,982 LTC for the treasury was disclosed. Subsequently, in June, Litecoin creator Charlie Lee joined the company’s advisory board.
By July, that treasury was holding 20,084 LTC while boasting a Litecoin-per-share yield of roughly 151.6%. This metric is used by Luxxfolio to highlight the depth of its treasury relative to outstanding shares.
At the time, the company said it views Litecoin as a “core building block of its infrastructure-focused business model” rather than just a long-term reserve asset.
However, like many of the crypto treasury companies that have emerged of late, Luxxfolio’s move into the crypto treasury trend may have stemmed from necessity as much as conviction.
According to data from its latest quarterly financials, the company reported no revenue and a net loss of nearly $197,000 for the second quarter, and just $112,000 in cash on hand, which forced it to rely on a private placement to stay afloat.
Corporate Treasury Strategy: Litecoin Emerges as a Key Investment Asset
Luxxfolio is not the only company that has taken an interest in Litecoin in recent months. The Nasdaq-listed biotech firm MEI Pharma made headlines in July when a $100 million commitment to a dedicated Litecoin treasury strategy was disclosed.
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As part of the initiative, a direct equity stake in MEI Pharma was taken by the Litecoin Foundation, while Lee joined the company’s board of directors.
Fast forward to August, it was announced by MEI that it had acquired 929,548 Litecoin against an approximately $110.4 million investment.
Litecoin was also included in Thumzup Media Corporation’s $250 million treasury plan, which was disclosed in July alongside Bitcoin, Ethereum, Solana, XRP, Dogecoin, and USDC.
