Mega Matrix files $2B SEC registration to build ENA token treasury. NYSE stock down 30% since crypto pivot but recovers from initial drop after Ethena filing.

TLDR

• Mega Matrix filed a $2 billion shelf registration to build an ENA token-focused digital asset treasury

• The NYSE-listed company aims to be first publicly traded firm anchored in stablecoin governance

• Stock initially dropped 6% but recovered, still down 30% since August crypto pivot announcement

• Strategy targets Ethena’s fee-switch mechanism that could distribute protocol revenues to ENA holders

• Move follows trend of companies adopting digital asset treasuries, though sector shows recent weakness

Mega Matrix, a NYSE-listed holding company, has filed a $2 billion shelf registration with the Securities and Exchange Commission to fund a crypto treasury strategy centered on Ethena’s ENA governance token.

The filing allows Mega Matrix to raise capital through future securities offerings. All proceeds will go toward accumulating ENA tokens from the Ethena protocol, which operates the USDe synthetic stablecoin.

The company’s stock initially fell 6% following the announcement before recovering. Shares remain down nearly 30% since Mega Matrix first revealed its cryptocurrency pivot on August 25.

Why Mega Matrix Chose ENA Over Direct Stablecoin Holdings

Rather than holding USDe stablecoins directly, Mega Matrix plans to build a large position in ENA governance tokens. This strategy aims to benefit from Ethena’s planned fee-switch mechanism.

Once activated, this mechanism would distribute a portion of protocol revenues to ENA token holders. Ethena has already generated over $500 million in cumulative gross interest revenue through August.

USDe maintains its $1 peg through a unique synthetic model. The protocol holds spot cryptocurrencies like bitcoin and ether while taking equal short positions in derivatives markets. This hedging approach generates yield from funding rates.

The synthetic stablecoin has grown rapidly to become the world’s third-largest stablecoin with a $12.5 billion market cap. Growth partly stems from US regulations that prevent traditional stablecoin issuers from paying yield directly to holders.

Digital Asset Treasury Strategy Gains Traction

Mega Matrix joins other publicly traded companies adopting crypto treasury strategies. The $2 billion registration is unusually large for a company with just $113 million market capitalization.

The firm currently operates FlexTV, a streaming platform, with first-quarter revenue of $7.74 million and net losses of $2.48 million. It previously purchased $1.27 million in bitcoin during June.

Other companies pursuing similar approaches include ETHZilla, which has accumulated hundreds of millions in ether value, plus BitMine Immersion Technologies and SharpLink Gaming.

MicroStrategy pioneered the corporate bitcoin treasury model, while newer entrants increasingly focus on smaller tokens and specialized protocols.

However, the digital asset treasury sector has shown volatility. Several companies following these strategies have seen stock prices decline 70-80% in recent months, with some trading below their cryptocurrency holdings’ net asset value.

Another firm called StablecoinX announced similar ENA treasury plans through a SPAC merger targeting completion by year-end.

Mega Matrix completed its shelf registration Thursday, providing the regulatory framework to proceed with ENA token purchases through future fundraising rounds.