MEI Pharma Allocates Treasury to Litecoin, Boosts LTC 7%
Canadian oncology firm MEI Pharma has allocated the majority of its cash reserves to Litecoin, purchasing approximately 700,000 LTC tokens at an average price of $150 per coin. Earlier reports estimated 930,000 LTC, representing about 60% of its treasury. The CFO cited Litecoin’s fast settlement and strong liquidity as key benefits for corporate crypto treasury management.
This move aligns with a broader trend of nonfinancial public companies diversifying away from fiat, following MicroStrategy’s Bitcoin strategy. After MEI Pharma’s announcement, LTC price jumped 7%, reflecting positive market sentiment. Traders should watch for changes in Litecoin’s market liquidity and price volatility as institutional adoption grows.
MEI Pharma plans regular disclosures of its crypto holdings and may expand into other digital assets. Increased corporate treasury allocation to Litecoin could boost LTC’s trading volume and market capitalization over the long term.
Bullish
The allocation of treasury funds to Litecoin marks a significant institutional adoption event. In the short term, MEI Pharma’s purchase drove a 7% price increase in LTC, as traders reacted positively to a major public company entering the market. This surge may be accompanied by heightened volatility and shifts in liquidity as large holdings move on and off exchanges.
Long term, regular disclosures of crypto holdings and potential expansion into other digital assets can bolster investor confidence. Historical cases like MicroStrategy’s Bitcoin strategy suggest that sustained corporate treasury allocations can underpin steady price appreciation. Given Litecoin’s robust network liquidity and fast settlement, this move is likely to support continued bullish momentum for LTC.