Ethena drops 10% following Mega Matrix's $2 billion ENA treasury plan

• Mega Matrix filed a $2 billion universal shelf registration for a digital asset treasury with the US SEC.
• The treasury will focus on acquiring stablecoin governance tokens, starting with ENA.
• ENA declined 10% in the past 24 hours despite the announcement.

Ethena (ENA) declined on Thursday despite Singapore-based Mega Matrix's (MPU) plan to raise $2 billion from a series of shelf offerings to establish a treasury reserve focused on acquiring ENA and other stablecoin governance tokens.

Mega Matrix reveals plan for treasury reserve focused on ENA

NYSE-listed Mega Matrix has filed a $2 billion shelf registration with the US Securities and Exchange Commission (SEC) to back a stablecoin-focused treasury strategy, according to a Thursday statement.

The company stated that the proceeds will be directed toward the Ethena ecosystem through the purchase of its governance token.

Although the shelf registration is not yet effective, the company plans to raise $2 billion in capital through the offering and sale of Class A ordinary shares, preferred shares, debt securities, warrants, units, or a combination of these instruments.

It also added that it would expand the treasury to include other leading stablecoin governance tokens over time.

"Governance tokens are the equity of stablecoin ecosystems, such as ENA. By building strategic positions, MPU gains both financial upside and a seat at the table where the future of money is being coded," the management added.

The Ethena ecosystem currently houses the USDe and USDtb stablecoins. USDe is the Ethena network's primary stablecoin, designed to maintain a $1 peg through a delta-neutral hedging model and is backed by assets such as staked Ethereum.

On the other hand, USDtb, which was launched in December, is primarily backed by institutional assets held through BlackRock's BUIDL fund.

The move to establish a stablecoin governance token reserve underscores the growing trend among publicly traded firms to shift towards digital asset reserves over the past few months.

ENA fell 9% in the past 24 hours despite the announcement.