FRNT Financial just updated its treasury holdings. At the moment, $FRNT.V holds no material directional exposure to cryptocurrency in its Treasury. As a result, the company's capital has suered no material losses in the current cryptocurrency sello. Instead, they’ve been investing in arbitrage mandates that have historically been much more defensive against downward movement and, at times, quite profitable. This means that their assets aren’t directly tied to cryptocurrency prices, and the current downward trend isn’t impacting them as hard as many other companies in the space. The non-directional exposure limits volatility and risk for $FRNT.V, which is essential for long-term companies in the crypto space.
https://ca.finance.yahoo.com/news/frnt-financial-provides-treasury-holdings-123000371.html
For those who don’t know, $FRNT.V is a company that aims to bring crypto to institutional investors through its multiple services, but I’ll focus on the treasury management service because of the news release.
- It provides customized and adaptive strategies that give yield enhancement solutions for large holders of crypto and fiat currencies.
- Fully automated access to peer-to-peer lending markets in the crypto space.
- Lending offers 2-day liquidity and withdrawals at any point when available and can be re-lent at the click of a button.
Overall, the current price action is not justified by the crypto market selloff due to their ability to have a more non-directional approach to crypto. As more institutions utilize $FRNT’s services they're only going to see an increase in revenues over time. Glad to see the 20% rebound today as the stock moves back to the stabilized territory.