Summary by Futu AI
reAlpha Tech Corp. announced on December 19, 2024, that its board has approved a new cryptocurrency investment policy, adopting Bitcoin, Ethereum, and Solana as primary treasury reserve assets. The company plans to allocate up to 25% of its cash exceeding estimated 6-month operating expenses to cryptocurrency purchases, subject to market conditions and operational needs.The strategy aims to diversify the company's treasury holdings while maintaining flexibility for growth initiatives. The implementation includes monitoring cryptocurrency holdings closely and adjusting allocation strategy based on market conditions and regulatory frameworks. The company will limit investments to cryptocurrencies that regulatory bodies have indicated are likely not securities.The policy comes with inherent risks, including cryptocurrency price volatility, custody security concerns, and potential regulatory changes. reAlpha acknowledges that cryptocurrencies do not pay interest or dividends, and the strategy remains untested over extended periods. The company will need to comply with new accounting standards (ASU 2023-08) effective after December 15, 2024, which could impact financial reporting and increase result volatility.