Silo Pharma has secured a key pillar of its digital asset strategy by partnering with institutional custodian Fireblocks, triggering a 22% stock surge as investors appear to endorse the move to secure its Bitcoin and Ethereum treasuries.
Summary
- Silo Pharma stock jumped 22% after naming Fireblocks as custodian for its crypto treasury.
- The company launched its digital asset strategy in August, targeting Bitcoin, Ethereum, and Solana.
- Initial purchases of ETH and SOL have already been staked to generate yield.
According to a press release dated Sept. 23, the Nasdaq-listed biopharma firm has tapped Fireblocks as the custodian for its institutional crypto treasury platform.
The agreement tasks Fireblocks with securing Silo’s digital asset operations, including the buying, staking, and managing of its Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) holdings. CEO Eric Weisblum said the partnership is intended to embed “enterprise grade security and governance standards” into the company’s nascent crypto strategy.
Silo Pharma’s crypto treasury takes shape
Silo Pharma’s pivot into digital assets started on August 5, when the company announced the launch of its cryptocurrency treasury strategy. In a filing with the SEC, Silo said it was targeting “multi-chain digital asset growth,” specifically naming Bitcoin, Ethereum, and Solana.
The company stated it intended to make opportunistic purchases, leverage staking for yield generation, and focus on capital preservation. To lead this charge, Silo appointed Corwin Yu, a seasoned technology and trading executive with over two decades of experience in institutional finance and digital assets, as the head of a newly formed Crypto Advisory Board.
Just over a month later, on Sept. 16, Silo disclosed its first purchases under the program, acquiring Ethereum and Solana tokens. The exact amounts were not disclosed, but the company emphasized that the tokens had already been staked to provide income and strengthen its financial position.
The latest announcement that Fireblocks will safeguard those holdings pushed Silo’s stock up more than 22% in Tuesday’s trading session, bringing fresh attention to its unusual dual strategy of drug development and digital asset treasury management. Investors appeared to respond to the credibility that comes with outsourcing custody to a firm trusted by major financial institutions.
Fireblocks itself has become a fixture in the digital asset ecosystem, having facilitated over $6 trillion in transfers through its network. Its platform is built around multi-party computation, Intel SGX, and layered authentication measures designed to reduce risks of theft or loss.
Source: https://crypto.news/silo-pharma-rallies-fireblocks-crypto-treasury-pivot/
