Mega Matrix files $2 billion shelf registration with SEC to fund stablecoin-focused treasury strategy, aiming at the Ethena stablecoin ecosystem. Strategy focuses on accumulating ENA governance token, providing exposure to USDe revenue while securing governance influence. Shelf registration allows gradual stock issuance rather than all at once.

Mega Matrix plans to concentrate influence and yield in ENA, benefiting from Ethena’s fee-switch feature. Rapid growth of Circle and rise of digital asset treasury strategies drive the Ethena-focused plan. Demand for yield-bearing stablecoins like Ethena’s USDe is fueled by the US GENIUS Act banning yield payments to stablecoin holders.

USDe, a synthetic stablecoin by Ethena, maintains dollar peg using collateral and perpetual futures contracts, generating yield from derivatives markets. Ethena’s cumulative gross interest revenue surpasses $500 million, with USDe now the world’s third-largest stablecoin at $12.5 billion market cap.

Mega Matrix’s $2 billion shelf registration is significant for its $113 million market cap. Company’s turn to digital assets follows $1.27 million Bitcoin purchase in June. Other firms, like ETHZilla and BitMine Immersion Technologies, pivot toward digital asset treasuries, but risks are significant.

Josip Rupena of lending firm Milo warns of risks associated with digital asset treasury strategies, comparing them to collateralized debt obligations from the 2008 financial crisis. Companies like Mega Matrix, ETHZilla, and BitMine Immersion Technologies face uncertainty in exposure from complex financial engineering of digital assets.

Read more at Cointelegraph: Mega Matrix Files $2B Shelf to Fund Stablecoin Treasury Strategy