Real estate management firm Caliber (NASDAQ: CWD) saw its stock price surge 80% to $2.93 in early trading after announcing a digital asset treasury strategy focused on acquiring Chainlink (LINK) tokens for long-term holding and staking rewards.
The Scottsdale, Arizona-based company’s shares later retreated to $2.65, representing a 56% gain as of current trading, following the board’s approval of the cryptocurrency treasury diversification plan.
The company’s board approved the plan and said part of its treasury money will be used to buy LINK tokens. The idea is to hold them for a long time and also earn extra income by staking, which is when tokens are locked in the network to support operations and give rewards. Caliber believes this plan will help strengthen its financial position, and create more cash.
To pay for this plan, Caliber will use money from its existing equity line of credit, its cash reserves, and may also issue new equity-based securities. The company explained that holding LINK diversifies its treasury while giving it a stake in a network that is growing across finance.
New Advisory Board for Crypto Strategy
Caliber also created the Caliber Crypto Advisory Board to guide the project. This team includes blockchain experts and legal professionals who will guide the company on rules, how to manage its new digital assets.
“This is a natural evolution for Caliber and aligns us with the future of digital finance.”Chief Executive Officer Chris Loeffler said in the press release.
He also said the plan shows how Caliber is not only about real estate but also about digital assets, and that makes it different from other property companies. Caliber currently manages over $2.9 billion in real estate, including hotels, apartments, and factories, and now it wants to add blockchain assets to attract new types of investors.
The company pointed out that Chainlink already works with large organizations like Mastercard, SWIFT, and DTCC. Caliber said these examples prove that Chainlink is an important part of financial technology that is being used globally.
“The Board believes that the adoption of the DAT strategy and DAT Policy can enhance shareholder value while strengthening the Company’s balance sheet and improving liquidity.” The company said in its statement.
Also Read: US Commerce Dept Teams with Chainlink to Bring Data Onchain
