The Heritage Distilling Holding Company, a US-based craft distillery, saw its inventory (CASK) fall 28.25% after revealing its plans to create a $360 million story (IP) reserve.
The move has made Heritage the first Nasdaq registered company to create IP, the Story Protocol’s native token, as its main reserve asset. Story Protocol is a Layer-1 blockchain focused on intellectual property management.
Heritage Distilling’s $360 Million Story (IP) Reserves: Game Changer or Risk?
In a recent press release, Heritage Distilling Holding Company announced a $220 million private investment in the Public Equity (Pipe) finance round. The round also includes $100 million in cash and $120 million worth of IP tokens supported by the Story Foundation and other investors.
Plus, Cantor Fitzgerald & Co. and Roth Capital Partners serve as co-placement agent and financial advisor.
“The transaction represents a bold leap in not just heritage, but how public companies can participate in the digital asset economy. We consider IP as a new category of strategic preparation to advance multiple parts of AI growth over the next decade.”
As part of the strategy, the company will allocate $82 million in revenue to purchase IP tokens directly from the Story Foundation. The tokens will be sold at a fixed price of $3.40 per IP.
The Story Foundation will use the funds to buy back IP tokens from the open market within 90 days.
“This new Treasury unlocks market access to a new kind of digital assets based on real-world economic foundations, including licensing, royalty, ownership and the origins of data in the age of AI. Through this collaboration, stories will gain market validation, institutional reach and capital, driving the growth of networks and ecosocieties while achieving an ambitious establishment vision.
This initiative is part of a broader trend that allows businesses to incorporate digital assets more and more into their balance sheets. Nevertheless, the news didn’t have the enthusiasm of many investors.
Google Finance data showed Cask’s closing price fell by $0.5, a 28.25%. In pre-market trading, Heritage shares rose 0.020%.
The decline took place in the wider caves. Its market capitalization is $11.76 million, and it has been found that the stock price has fallen more than 85% since its release in late 2024.
Additionally, data from Beincrypto Markets showed that IP values fell 14.99% over the past day amid the market recession. The asset wiped out its profits after a recent list on Upbit, South Korea’s largest cryptocurrency exchange. At the time of pressing, it was trading for $5.7.
In addition to the accompanying price drops, the IP Treasury move also faces backlash over suspicions of supply management. In a post on X (formerly Twitter), Market Watchers criticized Story Protocol’s decision to buy back the tokens.
Pseudonym users called on the project to use manipulative tactics to increase the price of tokens.
Therefore, discussions surrounding IP token strategies highlight the challenges of balancing innovation between ethical and transparent practices in the digital asset market.
The US office has placed a $360 million bet on Story (IP). WallStreet states that “plot twist” was the first to appear in Beincrypto.
