Key Takeaways:
- Canadian firm Luxxfolio’s pivot to adopting Litecoin (LTC) treasury impacted its shares, decreasing by 3.5%.
- The firm plans to raise $73 million to expand its Litecoin treasury and currently holds 5,436 LTC worth.
- Luxxfolio recorded a loss of nearly $19 million since its inception and reported a net loss of $197,000 during Q2 filings.
According to the recent filings, the Canadian crypto infrastructure firm Luxxfolio (LUXX) announced plans to raise CAD $100 million (US $73 million) to expand its Litecoin treasury strategy.
However, despite the announcement, the shares of Luxxfolio have dropped by 3.57% during the last trading session. Litecoin, on the other hand, has decreased by 0.76% during the last 24 hours.
According to the recent prospectus filed, Luxxfolio aims to scale a Litecoin-focused treasury approach, months after being the first publicly traded firm to anchor reserves in Litecoin. The plan is to generate capital over 25 months by issuing shares, debt, or other securities, aiming to reach 1 million LTC by 2026.
CEO Tomek Antoniak framed Litecoin as “hard currency,” emphasizing that scale is essential: “The larger our treasury, infrastructure, and ecosystem footprint, the greater our ability to capture market share and influence adoption.”
The firm recently added Litecoin creator Charlie Lee to its advisory board in June, a move seen as bolstering its credibility.
The reason for this pivot could be due to the financial distress faced by the company, with losses running to nearly $19 million since the company’s inception. During the Q2 filings, Luxxfolio reported a net loss of $197,000 and had just $112,000 in cash. The firm relied on a private placement worth $844,000 to stay afloat.
Litecoin and Staking
According to the shelf prospectus, the firm will stake its Litecoin holdings to generate yields. Staking crypto is locking up your coins to help safeguard a blockchain network in exchange for incentives or interest. Luxxfolio will stake its Litecoin holdings with Coinbase and in return, get cbLTC, which will be used in DeFi (Decentralized Finance) platforms to earn interest through staking.
On May 31, 2025, Luxxfolio held 5,436 LTC worth $650,251 and had deployed 841 cbLTC (Coinbase’s version of LTC) by mid-July. The assets are held in custody with Netcoins Inc. and eventually plans to have full self-custody of the assets.
Bigger Picture
Luxxfolio’s move highlights a growing trend of financially strained firms adopting alternative treasury strategies in hopes of survival. Whether the $73M raise succeeds could determine if Litecoin can emerge as a credible reserve asset alongside Bitcoin (BTC) or if this becomes another high-risk bet from a company in distress.
