Tesla Competitor Launches Crypto Strategy

Faraday Future (NASDAQ: FFAI), a zombie EV company, recently unveiled its own cryptocurrency strategy, joining a broader craze.

The company has announced the C10 Index, which is a basket of cryptocurrencies weighted by market cap. Bitcoin makes up almost half of the index. Ethereum (ETH) has a 24% share.

The company has already purchased $30 million worth of crypto, and it plans to increase this sum to as much as $1 billion.

98% plunge

Faraday Future, which was founded back in 2014, emerged as an early Tesla competitor.

In 2016, it introduced its flashy Batman-like FFZERO1 concept car that allegedly showcased its technology.

However, the company has been grappling with production delays as well as limited vehicle deliveries.

In 2021, it received a Wells notice from the U.S. Securities and Exchange Commission (SEC) related to its SPAC merger.

The stock has plunged by roughly 98% from its peak, which is a typical SPAC boom-and-bust story.

Tesla's Bitcoin holdings

In the meantime, Tesla remains the 11th largest Bitcoin treasury company with total holdings of 11,509 coins.

The company initially purchased $1.5 billion worth of BTC in February 2012, propelling the cryptocurrency's bull run.

Tesla also briefly started accepting Bitcoin, but this novel payment option was ditched by the company due to concerns about the carbon footprint associated with mining.   

Tesla and Faraday Futures are so far the only e-car companies that have waded into crypto treasuries. 

As reported by U.Today, Canadian light electric vehicle maker Daymak also introduced a car that was capable of mining Bitcoin and Dogecoin back in 2021.