Token Cat's Board Approves Significant Crypto Investment
Token Cat Limited announced on December 2, 2025, that its board has formally approved a new “Crypto Asset Investment Policy.” This policy permits the company to allocate up to $1 billion of its cash reserves into selected crypto assets.
Leadership and Strategy for Crypto Investment
To execute this new strategy, Token Cat has appointed Sav Persico as Chief Operating Officer. Persico brings three decades of experience in crypto and blockchain. Token Cat’s CEO, Guangsheng Liu, stated that the crypto investment policy is essential for strengthening the firm’s asset strategy under stable and disciplined leadership.
The deployment of this policy will be conducted in phases, contingent upon market conditions, risk evaluations, and capital requirements. The initial allocation will focus on emerging crypto-project tokens, with a particular emphasis on sectors such as artificial intelligence (AI), “RAW-to-chain” initiatives, and hybrid token-equity models.
Token Cat plans to utilize “highest-tier” external custodians for managing the acquired assets, rather than handling them internally. A newly established Crypto Asset Risk Committee, chaired by the CFO, will be responsible for overseeing asset allocation, risk management, and providing regular updates to the board.
The company emphasized that these crypto holdings are intended to serve as long-term value reserves, aiming to enhance its financial resilience.
The Growing Trend of Crypto Reserve Diversification
The acquisition of crypto assets for diversifying financial reserves has become increasingly popular among companies in 2025, driven by economic uncertainties and inflation concerns.
Other companies have also been adopting strategies involving digital assets. VivoPower, an energy-solutions company, recently announced its entry into digital-asset treasury management by raising funds to invest in the cryptocurrency XRP.
SharpLink Gaming shifted its strategy in 2025 from a primary focus on gaming to accumulating Ethereum (ETH) as a treasury asset. Beyond simply holding the digital assets, SharpLink Gaming stakes a significant portion of its holdings to generate yield.
Token Cat's Bold Move Amidst Financial Landscape
In November 2025, Token Cat divested its loss-making operations and authorized its U.S. subsidiary to explore up to $500 million in fundraising. These funds are intended for investments in next-generation energy infrastructure, specifically nuclear fission technology designed to power AI computing requirements and high-performance workloads.
Given Token Cat’s relatively modest market capitalization of $29 million and its declining year-to-date stock performance, the decision to diversify its reserves is considered a bold and potentially risky move. Nevertheless, investors have responded positively so far, with Token Cat’s share price rising approximately 4.1% following the announcement.