MEI Pharma (now rebranded as Lite Technique) has turn into the primary U.S.-listed firm to undertake Litecoin as a main reserve asset, committing $100 million to the cryptocurrency as a part of its new treasury technique.
- Lite Technique (ex-MEI Pharma) turned the primary U.S.-listed agency to undertake Litecoin as a main reserve, committing $100 million.
- Charlie Lee (Litecoin creator, board member) helped construction the plan with Titan Companions and GSR.
- In a Q&A with crypto.information, Lee discusses LTC’s uptime, low charges, mounted provide, how Lite Technique goals to be an institutional gateway forward of potential LTC ETFs.
Charlie Lee, the creator of Litecoin (LTC) and Lite Technique board member, has been carefully concerned in shaping the plan, working alongside key companions to execute one of many largest LTC acquisitions so far.
On this interview, Lee explains why Lite Technique chosen Litecoin over larger-cap cryptocurrencies and stablecoins, how the treasury initiative was structured, and what the transfer may sign for institutional adoption of LTC. He additionally addresses questions round governance, market threat, and the long-term imaginative and prescient for integrating Litecoin into company reserves.
The dialog additionally touches on Litecoin’s distinctive attributes, corresponding to its a few years of uninterrupted uptime, low transaction charges, and widespread retail integration. Lee outlines how the numerous constructive attributes, mixed with Litecoin’s mounted provide and observe report, place the corporate’s technique as each a sensible step and a forward-looking guess on digital belongings.
The whole interview with Litecoin creator and Lite Technique board member Charlie Lee is under.
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crypto.information: The primary query to ask is probably the obvious one: Why did MEI select Litecoin as its main reserve asset? What distinctive benefits or convictions about LTC made it extra compelling than larger-cap cash or stablecoins?
Charlie Lee: Clearly, because the creator of Litecoin I’m biased right here however there are a number of causes for the conviction I’ve maintained in LTC and the Litecoin ecosystem for the reason that very starting.
Litecoin takes the benefits of Bitcoin and makes it usable. It’s quicker and it’s cheaper to transact, making it the perfect asset for funds and transfers. That’s an enormous use case proper from the beginning.
LTC is a confirmed type of “arduous cash” with a observe report of adoption going again 14 years: That’s 4 years earlier than Ethereum. LTC is confirmed as a retailer of worth and has an outlined, restricted provide, which makes it engaging as a long-term reserve asset, in comparison with fiat-denominated crypto stablecoins, which by and enormous are mainly wrappers for U.S. {dollars} and carry inherent technological and political safety dangers.
But, from an institutional perspective, LTC remains to be early. In contrast to BTC and ETH, no ETFs have been authorised for LTC.
Whereas LTC is among the many largest crypto belongings by market cap, it’s market cap is lower than 1/250th of BTC’s and 1/sixtieth of ETH’s. So we see potential upside right here.
If you’re on the lookout for a tried-and-true digital asset with stable use instances, ongoing growth and main upside, then we consider LTC is a horny choice for treasuries alongside BTC, ETH and different belongings.
CN: As Litecoin’s founder and now an MEI Pharma board member, how did you become involved on this treasury initiative? Did MEI strategy you, or have you ever been advocating for Litecoin’s inclusion? Are you able to stroll us by means of how this $100 million treasury plan got here collectively and your function in making it occur?
CL: After watching the market develop for Bitcoin and Ethereum treasuries, it felt inevitable that Litecoin would additionally discover its place, given its robust historic observe report and uptime, CFTC classification as a commodity, distinctive properties, and the absence of a VC or founder overhang. We believed it was the proper asset for a digital asset treasury.
As the only placement agent in reference to the personal funding in public fairness (PIPE), Titan Companions deserves credit score for taking the main function in placing collectively the deal that enabled MEI to pursue the LTC technique.
A variety of autos had been explored for the initiative, however in the end MEI stood out.
In contrast to many others, MEI’s administration and board had completed a wonderful job managing the corporate—that they had preserved a big money steadiness, carried no debt, and had minimal dilutive securities excellent. That made MEI the clear first selection.
As for a way the transaction got here collectively, we labored hand-in-hand with GSR to construction it thoughtfully. We took classes from the successes and failures of different autos and constructed a strong capital markets plan earlier than launching. The extent of curiosity and eventual demand within the PIPE providing that launched the brand new technique was extraordinarily thrilling to see.
CN: MEI is the primary U.S.-listed public firm to undertake Litecoin as a main reserve asset. How significant is that this for Litecoin’s mainstream credibility and institutional adoption? Do you count on different firms to comply with now that MEI has set a precedent?
CL: The retail adoption for Litecoin is already there. Litecoin is among the hottest cryptocurrencies for funds by way of transaction quantity, alongside Bitcoin, USDC, and USDT.
Out of the cash on that listing, solely Bitcoin and Litecoin could be thought-about decentralized, arduous cash. Litecoin improves upon Bitcoin by being optimized for funds and transfers. I prefer to name Litecoin “the Individuals’s cash.”
However you may also make a case for Litecoin (since it’s arduous cash) being the Digital Silver to Bitcoin’s Digital Gold, from an institutional perspective.
That’s the chance we see with MEIP, and naturally we’ve like-minded opponents. We definitely anticipate different firms could comply with our lead and incorporate Litecoin into their reserves – both as a single-asset technique or as a part of a basket of digital belongings.
What we’re actually wanting ahead to within the brief time period, nevertheless, is the broadly anticipated approval of Litecoin ETFs within the U.S. We expect this may actually open up the enjoying discipline.
MEIP is the simplest and most secure means for all traders – large and small – to realize publicity to LTC in a compliant means, upfront of the LTC ETF approvals.
CN: The announcement notes Litecoin’s 13 years of uptime, low charges, and integration with platforms like Robinhood, PayPal, BitPay, and Venmo. Why are these particular attributes talked about by a pharmaceutical firm as an alternative of specializing in different qualities such because the mounted 84 million provide and halving cycle, which communicate extra on to its worth as a scarce financial asset?
CL: That’s an incredible query. On the retail stage, individuals are extra involved with the flexibility to make use of LTC for safe, quick and cheap funds.
We’re constructing MEIP because the institutional gateway to Litecoin. As you reference above, the “different aspect” of LTC turns into extra necessary to massive, long-term traders – that’s, LTC has an encoded arduous cap and halving schedule for mining rewards. For practically 14 years, Litecoin has maintained not solely its operations – however its notion as a retailer of worth. In different phrases, it’s arduous cash.
We’re extremely bullish each as Litecoin as a way of cost for retail, and as a long-term retailer of worth for establishments.
CN: Buying 929,548 LTC accounts for greater than 1% of the overall provide, which is a considerable determine. How did MEI execute this with out spiking the market? Are you able to share particulars on the technique for getting such a big place so rapidly and quietly?
CL: As a part of the Firm’s turning into the primary U.S. listed public firm to undertake Litecoin as a main reserve asset, we partnered with GSR, a number one crypto funding agency, which makes a speciality of executing massive and delicate trades with minimal market affect. For MEIP’s LTC acquisition, they mix superior buying and selling algos with discretionary execution to mix in liquidity and opportunistically entry dimension, creating the chance for the corporate to take pleasure in favorable outcomes with out spiking the market.
CN: MEI filings be aware an choice to accumulate one other $100 million price of LTC. Underneath what circumstances would this turn into a actuality? Is there a long-term goal proportion of the treasury allotted to Litecoin, or any established timeline?
CL: Notice: Quite than calling it an “choice,” it’s extra correct to say MEI has an at-the-market providing program to promote as much as $100 million price of its widespread inventory to accumulate extra LTC. Technically, an “choice” would imply one thing else.
Quite than setting particular targets, let’s take a step again. Our mission is to institutionalize Litecoin as a strategic treasury asset, bridging arduous cash ideas with fashionable capital markets.
I personally have been utterly immersed in Litecoin for the reason that starting. We’re on this for the very lengthy haul.
Typically talking we plan to build up LTC so long as there may be demand out there and it accrues worth to our shareholders.
CN: How is MEI making ready to handle impairment dangers and investor considerations? Sentiment modifications rapidly, and with the current weak point we could also be solely per week or two of poor buying and selling away from coming into a bear market and the final crypto bear market (from 2021 to 2022) lasted roughly 21 months.
CL: As I mentioned, we’re in it for the lengthy haul. The management group, our companions at GSR and myself have been by means of a number of cycles and have realized to endure excessive highs and lows. With rising adoption and bettering regulatory readability, I’ve by no means been extra bullish on crypto over the long run than I’m proper now.
Along with our companions at GSR, we’ve the experience essential to navigate conventional and crypto market pressures. Investor safety is our prime concern and we’ve plans in place for various market circumstances.
CN: Does MEI plan to generate yield from its holdings by means of lending or liquidity provision? The press launch mentions attainable mining exercise, however how lifelike is mining as a part of the technique?
CL: We are going to proceed to guage the alternatives which are accessible to the Firm to proceed to execute/develop our place/technique. We have now some improbable, properly revered advisors helping us. As soon as we’ve assessed our choices, we’ll transfer ahead with what we really feel makes essentially the most sense to our traders and what’s going to assist the Litecoin chain itself.
CN: What would you say to traders or the broader funding neighborhood who could also be involved that your twin function as Litecoin’s founder and MEI board member may create a battle of curiosity, the place what’s finest for Litecoin isn’t essentially in the very best curiosity of MEI shareholders?
I’ve been 100% clear about my very own LTC holdings and transactions.
I consider that my standing because the creator of Litecoin is a significant constructive for my place as MEI board member, as I’ve been deeply and actively concerned within the Litecoin ecosystem actually for the reason that starting. Individuals ought to at all times train cautious scrutiny when making investments. We’re taking care to keep away from even the looks of conflicts of curiosity – whether or not it pertains to myself or any member of the MEI group – by being as clear as attainable, following all regulatory pointers, and counting on a company governance construction that accommodates correct checks and balances all through the board and government ranges.
We’re constructing MEIP to be a pillar of the Litecoin ecosystem and are doing so with our basic accountability, to behave in the very best curiosity of our shareholders, in thoughts. We consider that typically talking, the pursuits of our Litecoin treasury technique will align with the pursuits of MEIP and our shareholders.
MEIP at all times will put its shareholders first. In furtherance of this governance precept, we’ve a board with a majority of unbiased administrators, a seasoned government group at MEIP, and powerful skilled relationships with market specialists at GSR.
Thus far, traders have been absolutely on board with what we’re doing at MEIP and we count on for this to be a tremendous journey collectively.
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