Token Cat Limited announced that its Board of Directors has approved a new Crypto Asset Investment Policy that authorizes the company to allocate up to $1 billion of its cash reserves into selected digital assets. The policy is being rolled out in phases and is designed to be governed by a Crypto Asset Risk Committee led by the CFO, with oversight and reporting to the Board.
The policy targets emerging crypto projects that combine artificial‑intelligence, raw‑to‑chain infrastructure and token‑equity hybrid models. Token Cat will not self‑custody the assets; instead it will use third‑party custody solutions that meet the highest‑tier security standards. The phased approach will see incremental deployment of capital, with the first tranche expected in the next quarter, followed by subsequent allocations as the company meets predefined risk and performance thresholds.
Token Cat’s market capitalization is approximately $29 million, and its shares have fallen about 24 % year‑to‑date. Despite the company’s modest size, the announcement triggered a 4.1 % rise in the stock on the day of the news, reflecting investor enthusiasm for the bold allocation and the appointment of a seasoned crypto executive. The move aligns Token Cat with a broader institutional trend of using crypto assets as long‑term value reserves and hedges against macroeconomic uncertainty.
CEO Guangsheng Liu said the policy “strengthens our asset strategy and signals confidence in the long‑term potential of digital assets.” COO Sav Persico added that the company views crypto holdings as “long‑term value reserves, not speculative tools,” and that the new role will focus on disciplined execution and compliance with rigorous custody and governance standards.
The announcement marks a significant strategic pivot for Token Cat, positioning it at the intersection of traditional corporate finance and the emerging digital‑asset ecosystem. By allocating a large portion of its cash reserves to crypto, the company is betting on the growth of AI‑driven blockchain projects and token‑equity models, while its risk‑management framework aims to mitigate volatility. The high‑risk, high‑reward nature of the investment—given the company’s $29 million market cap—could materially alter its financial trajectory, making this a key development for investors and analysts alike.
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