Enlivex plans to establish the first prediction-market-based treasury, leveraging the RAIN token.
The company has announced a $212 million PIPE offering, aiming to purchase RAIN with all of its net proceeds.
RAIN jumped over 115% on Monday following the announcement.
Enlivex Therapeutics, a Nasdaq-listed biopharmaceutical company, plans to raise $212 million through a private placement to establish the first prediction market-based treasury centered on the RAIN token, according to a statement on Monday.
The company entered into a private placement in public equity (PIPE) offering to sell 212 million shares at $1 per share, representing a 11.5% premium to its closing price last Friday. The entire net proceeds from the offering will be used to accumulate RAIN tokens while the company continues its regular operations.
RAIN is the native token of the decentralized prediction marketplace with the same name on the Arbitrum Layer 2 chain. The platform allows users to trade on the outcomes of real-world events, from elections to entertainment, using blockchain technology to facilitate transparent, peer-to-peer wagering without traditional intermediaries.
Enlivex also stated that Matteo Renzi, former Prime Minister of Italy, will join its board upon the closing of the offering.
Prediction marketplaces are attracting investors
The company's move follows strong growth across the prediction markets sector following the 2024 election cycle. Polymarket recently raised $2 billion from ICE, the parent firm of the New York Stock Exchange (NYSE), at a post-money valuation of about $10 billion.
Kalshi also reportedly secured $1 billion in a new round led by Sequoia Capital and Capital.
"With the recent institutional interest in leading prediction markets companies, it appears that this industry is maturing and has strong growth potential," said Chai Novik, Enlivex Chairman.
However, Enlivex's strategy enters a challenging environment for digital asset treasuries (DATs). The broader DAT market has experienced significant weakness recently, with most companies' shares trading well below their net asset values, even as the price of cryptocurrencies has remained in a downtrend.
Despite broader DAT concerns, markets responded enthusiastically to Enlivex's announcement. The company's stock closed with a 13% gain on Monday, while RAIN has skyrocketed 115% over the past 24 hours at the time of publication.
