Faraday Future launches crypto treasury strategy with C10 index

Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) announced a new strategy combining artificial intelligence mobility with cryptocurrency investments through what it calls an "EAI + Crypto" dual-flywheel ecosystem approach.

The electric vehicle company unveiled the C10 Index, a market-cap-weighted basket of the top 10 cryptocurrency assets excluding stablecoins, with a base value of 1,000 calculated from August 16. The company plans to launch a C10 Treasury product using an 80% passive and 20% active portfolio allocation model.

Faraday Future targets $500 million to $1 billion in initial cryptocurrency purchases, subject to securing necessary funding, with an initial $30 million purchase planned. The company stated it aims for potential long-term growth to tens of billions in size.

The strategy will operate through a wholly owned subsidiary called FFAI Crypto Treasury and Bridging Holdings Inc. The company said it plans to use dedicated financing exclusively for cryptocurrency asset purchases and expects staking yields of 3% to 5%.

"The next decade could be a super long bull cycle for the crypto market," said Ian Calderon, FF Co-Creation Officer and Founding Board Member of the California Blockchain Working Group.

California State Treasurer Fiona Ma provided video remarks supporting the company's strategy, according to the announcement made at an event in Pebble Beach on August 16.

The company said it plans to maintain separate legal and financial structures for its cryptocurrency and electric vehicle businesses to promote risk isolation. Digital assets will be held by third-party custodians and will be verifiable on blockchain networks.

Faraday Future also announced plans to explore creating an exchange-traded fund product based on the C10 Index.

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