Heritage Distilling’s $220M Raise Fuels $360M IP Token Reserve
Heritage Distilling (NASDAQ: CASK) has raised $220 million in a private placement to establish a pioneering $360 million IP token reserve. The deal includes $82 million for the direct purchase of 52.5 million IP tokens at $3.40 each, and $100 million via common stock and warrants. Backed by Story Protocol, a16z Crypto and Polychain, this blockchain IP asset reserve marks the first time a US-listed company uses tokenized intellectual property as its primary treasury reserve. Story Protocol will reinvest all net proceeds within 90 days to repurchase IP tokens on the open market, supporting token liquidity and market alignment. This IP token reserve and digital asset treasury strategy aims to unlock new revenue streams, enhance financial flexibility and broaden Heritage Distilling’s investor base. IP token trades at $6.09, down 12% in 24 hours but up 36% in 30 days, with a $1.8 billion market cap, 16% below its February peak. Cantor Fitzgerald and Roth Capital Partners acted as joint placement agents, and Open World served as strategic advisor.
Bullish
Major institutional backing from Story Protocol, a16z Crypto and Polychain, along with a $220M fundraise and a commitment to repurchase all net proceeds within 90 days, signals strong demand and reinforces token liquidity. Although IP token price dipped 12% in 24 hours due to market volatility, the launch of a $360M IP token reserve via a digital asset treasury provides fundamental support. Short-term volatility may persist as markets adjust, but the repurchase program and institutional confidence suggest medium- to long-term price appreciation, making the overall impact bullish.