Caliber Stock Jumps 77% on Chainlink Treasury Plan Amid Delisting Risk
Caliber Invests in Chainlink as Nasdaq Compliance Concerns Loom
Shares of real estate asset manager Caliber, traded on the Nasdaq, experienced a significant surge following the announcement of a strategic shift toward establishing a Chainlink treasury. This move comes as the company faces scrutiny from the exchange regarding compliance with listing requirements.
According to a recent announcement, Caliber’s board of directors has approved a digital asset treasury strategy focused on Chainlink (LINK). The company plans to allocate a portion of its funds to acquire LINK tokens.
The board has also formed a crypto advisory board to guide management on digital asset strategy and policy. Market participants appear to have reacted positively, with Caliber's stock rising by 77% in pre-market trading and maintaining those gains into the early trading day.
This surge occurred despite Caliber receiving notice from Nasdaq that it is no longer compliant with Listing Rule 5550(b)(1). Establishing a Chainlink treasury may be an attempt to address this issue and avoid delisting.
Nasdaq Delisting Concerns
Nasdaq Listing Rule 5550(b)(1) requires companies to maintain a minimum stakeholder equity of $2.5 million. Caliber has 45 days to submit a plan to regain compliance and, if accepted, up to 180 days to implement it.
An SEC filing from the second quarter of this year revealed that Caliber had a stockholders’ equity deficit of $17.6 million. Failure to rectify this deficit could result in delisting. Successfully raising capital for the Chainlink treasury could potentially help Caliber meet listing requirements.
Corporate Altcoin Treasuries on the Rise
Following MicroStrategy's pioneering Bitcoin treasury, a trend has emerged of companies establishing crypto treasuries, with an increasing focus on altcoins.
Recently, Trump Media and Technology Group announced plans to build a substantial Cronos (CRO) treasury. Sharps Technology also saw its stock nearly double after revealing a $400 million Solana (SOL) treasury strategy.
However, success is not guaranteed. Windtree Therapeutics, which established a BNB treasury, recently saw its stock fall 77% after Nasdaq announced its delisting.