Enlivex Moves into Crypto with $212M RAIN Token Acquisition, Former Italian PM Joins Board

A Nasdaq-listed biotech company is shifting its focus towards cryptocurrency by planning to raise $212 million to invest in a decentralized prediction market token, even as many digital-asset treasuries (DATs) face challenges.

Key Takeaways

Enlivex Therapeutics aims to raise $212 million through private investment in public equity.
The majority of the funds will be directed towards purchasing the Rain (RAIN) utility token.
The investment strategy indicates optimism in prediction markets as a growing sector within the blockchain space.
Matteo Renzi, former Prime Minister of Italy, will join Enlivex's board to assist with navigation of regulatory challenges and strategic decisions.

Enlivex Moves into Crypto with $212M RAIN Token Acquisition

Enlivex’s Bold Move into Cryptocurrency

Enlivex Therapeutics (ENLV), a biotech firm focused on macrophage reprogramming immunotherapy, announced on Monday its plan to raise $212 million by selling 212 million shares at $1 each. This share price represents an 11.5% discount compared to Friday’s close, as per the company’s filing with the US Securities and Exchange Commission.

The company intends to invest a significant portion of these funds in Rain (RAIN), the utility token for the Rain decentralized prediction market operating on the Arbitrum network. This move represents a unique corporate strategy focused specifically on a prediction market token, according to Enlivex's recent announcement to Cointelegraph.

Shai Novik, CEO of Enlivex, expressed confidence in the potential of prediction markets, stating that they represent one of the most exciting areas in the blockchain sector, with strong prospects for long-term growth. He highlighted that the decentralized nature of the Rain protocol contributes to its appeal, facilitating global access and scalability.

Enlivex plans to finalize its purchases of Rain tokens within 30 days after the closing of the offering.

Top prediction market protocols by TVL. Source: DeFiLlama.com

Rain’s Market Performance

Currently, Rain ranks as the 10th largest prediction market in the blockchain industry, possessing $1 million in total value locked (TVL) and generating $73,378 in monthly revenue over the past month, according to DefiLlama. In comparison, Polymarket operates with a much larger TVL of $259 million but does not disclose its monthly revenue data.

Launched on September 9, the Rain token is positioned as the 203rd largest cryptocurrency, with a market cap of $862 million. It has seen a price increase of over 9% in the last month and an impressive 795% surge since its launch, as reported by CoinMarketCap.

However, Enlivex's stock has experienced a decline, falling 23% year-to-date, with a drop of more than 16% in the last month according to Google Finance.

RAIN/USD, all-time chart. Source: CoinMarketCap

ENLV/USD, year-to-date chart. Source: Google Finance

Former Italian Prime Minister Joins Enlivex’s Board

Enlivex has also announced that former Italian Prime Minister Matteo Renzi will join its board. His role will involve guiding the company’s treasury strategy, particularly in navigating regulatory landscapes and building international relationships. Renzi, now a senator, is also part of JPMorgan’s International Council.

Renzi sees significant promise in blockchain technology and in predictive models that promote clarity and transparency in the decision-making process. He believes that these developments encourage greater participation and long-term thinking.

Meanwhile, declining stock and cryptocurrency prices pose a risk to the viability of smaller crypto treasury firms, which often have limited financial backing. As net asset values (NAVs) drop, it becomes increasingly challenging for these companies to raise new capital. In fact, Bitmine’s basic mNAV fell to 0.77, indicating difficulties in generating funds through new share issuances.

Other DATs have also seen their mNAVs decline sharply, affecting firms such as Strategy, Bitmine, Metaplanet, Sharplink Gaming, Upexi, and DeFi Development Corp.

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This investment by Enlivex into the RAIN token reflects a growing interest in decentralized predictions markets, despite the current volatility in the cryptocurrency sector. With significant backing and a strategic approach, Enlivex aims to carve out a unique niche in this evolving market segment.