Faraday Future retreats 7% after sharing Q2 results, crypto plan

Shares in electric vehicle maker Faraday Future Intelligent Electric fell almost 7% on Monday after the company filed its second-quarter earnings, which also came just a day after announcing a multibillion-dollar crypto reserve plan.

Faraday Future Intelligent Electric (FFAI) saw a brief spike as the markets opened on Monday, but eventually closed the trading session at $2.58, losing a week of gains, according to Google Finance.

It came the day after the company revealed its intention to eventually buy “tens of billions” worth of crypto after buying $30 million worth of crypto for its strategic reserve.

The EV maker launched its C10 Treasury, a basket of the top 10 crypto assets weighed by market capitalization, excluding stablecoins. Bitcoin constitutes 50% of the fund, while Ethereum is second with 23.7%. The company also said it intends to launch an ETF for the product.

The crypto strategy also includes buying $500 million to $1 billion worth of crypto from the top 10 cryptocurrencies for its strategic reserve.

Faraday Future stocks slid by nearly 7% on Monday as the company announced its earnings results for the June quarter. Source: Google Finance.

Second-quarter earnings muted

The slide came as Faraday Future reported a muted set of earnings for the June quarter. Still, the company’s commentary for the second half of the year was optimistic.

The company witnessed a net loss of $48.1 million from operations, slightly better than the $50.6 million loss it posted during the same quarter last year.

The company’s total operating expenses stood at $21.3 million, a decrease of 29% from the same period last year.

The company’s management said that they will continue to maintain financial discipline and roll out their EVs as per schedule.

“In the second quarter, we achieved several notable capital markets milestones and also continued to strengthen our operating efficiencies and cost control measures,” said Matthias Aydt, Global Co-CEO of Faraday Future.

The company also announced that its stock has been added to the Russell 3000 Index, which represents the 3,000 largest publicly traded companies in the US.

Institutional demand remains strong

Despite a brief downtick in Bitcoin and the broader market, publicly traded crypto treasury firms have continued to expand their strategic crypto reserves.

Related: Bitcoin bull and billionaire files for $250M SPAC targeting DeFi, AI

Strategy, the largest corporate holder of Bitcoin, bought 430 BTC worth $51.4 million last week.

Meanwhile, the Ether holdings of BitMine Immersion Technologies, the largest corporate holder of Ether, exceeded $6.6 billion, with the company purchasing more than 370,000 ETH in the past week.

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