This cryptocurrency soared 28% after receiving backing from MEI Pharma with a $100 million treasury.
MEI Pharma, a Nasdaq-listed biotechnology company, has allocated $100 million to acquire Litecoin (LTC), making it its primary treasury asset. This decision, executed through a private placement of shares (PIPE), positions MEI as the first public company in the pharmaceutical sector to adopt an altcoin as a corporate reserve.
For market experts, this operation not only marks a precedent in the integration of digital assets into corporate balance sheets, but has also generated an immediate impact on the markets: MEI Pharma shares rose more than 80% while the price of Litecoin surpassed $100 for the first time in almost 4 months.
BUY LITECOIN ON BIT2MELitecoin and MEIP react upwards
MEI Pharma's announcement sparked an immediate reaction in the markets. Litecoin recorded a weekly gain of 22%, reaching $116 per unit and breaking through a key technical resistance. Meanwhile, MEI Pharma (MEIP) shares soared as much as 83% in premarket trading, reflecting investor enthusiasm for the company's crypto strategy.
Source: CoinGecko
Meanwhile, Luxxfolio Holdings, another listed company, has also contributed to Litecoin's current rally by increasing its LTC holdings. Analysts believe these institutional acquisitions suggest an emerging trend among corporations seeking to diversify their assets with cryptocurrencies beyond Bitcoin and Ethereum.
Charlie Lee joins MEI Pharma board
As part of the digital workplace strategy Crypto pharmaceutical company Charlie Lee, founder of Litecoin, has been appointed member of the board of directors MEI Pharma. According to the company, his incorporation seeks to provide technical leadership and institutional vision to consolidate Litecoin's usefulness in corporate environments.
Lee has been a key figure in the development of Litecoin since its inception in 2011, driving improvements such as followed and optional privacy features. His presence on MEI Pharma's board of directors will reinforce the pharmaceutical company's commitment to the adoption of LTC as a strategic asset and to expanding its use beyond the retail sector.
Additionally, the Litecoin Foundation has directly invested in MEI Pharma, aligning its goals with those of the company to foster institutional adoption of the cryptocurrency.
BUY LITECOIN (LTC) HEREThe market anticipates a spot ETF for Litecoin
The regulatory environment, especially in the United States, also favors Litecoin. According to estimates by Polymarket and Bloomberg analysts, there is an 87% chance that the SEC will approve a Litecoin spot ETF before the end of the year. Although the SEC has not commented on the altcoin ETFs that managers are seeking, the potential approval of an LTC spot exchange-traded fund could pave the way for a wave of regulated institutional investment, similar to what has happened with Bitcoin and Ethereum ETFs.
Litecoin currently has CFTC-regulated futures markets, reinforcing its strong and transparent commodity profile and facilitating its SEC review.
Therefore, the potential approval of a Litecoin spot ETF could mark a turning point for this cryptocurrency, boosting its adoption and legitimacy in the traditional financial sector, while the crypto ecosystem continues to mature and gain the trust of both regulators and large investors. In this scenario, Litecoin could consolidate itself as an indispensable strategic asset in institutional treasuries.
However, based on technical analysis, although this cryptocurrency is currently showing positive signs and solid support at the $90 level, experts recommend remaining cautious, given the possibility of a short-term correction due to the typical volatility of cryptocurrencies and profit-taking by investors.
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