Heritage Distilling Holding Company, a US-based craft distillery, saw its stock (CASK) drop by 28.25% after revealing plans to create a $360 million Story (IP) reserve.
With this move, Heritage becomes the first Nasdaq-listed company to make IP, the native token of Story Protocol, as its primary reserve asset. Story Protocol is a layer-1 blockchain focused on intellectual property management.
Heritage Distilling’s $360 Million Story (IP) Reserve: A Game-Changer or Risk?
In a recent press release, Heritage Distilling Holding Company announced a $220 million private investment in public equity (PIPE) financing round. The round includes $100 million in cash and also $120 million worth of IP tokens, backed by Story Foundation and other investors.
Furthermore, Cantor Fitzgerald & Co. and Roth Capital Partners are acting as joint placement agents and financial advisors.
“This transaction represents a bold leap forward, not just for Heritage, but for how public companies can participate in the digital asset economy. We see IP as a new category of strategic reserve to advance multiple pieces of the next decade of AI’s growth,” Heritage’s CEO Justin Stiefel said.
As part of the strategy, the firm will allocate $82 million of the proceeds to purchasing IP tokens directly from the Story Foundation. The tokens will be sold at a fixed price of $3.40 per IP.
Story Foundation will then use the funds to repurchase IP tokens from the open market within 90 days.
“This new treasury unlocks market access to a new kind of digital asset that is grounded in real world economic fundamentals: licensing, royalties, ownership, data provenance in the age of AI. Through this collaboration, Story gains market validation, institutional reach, and the capital to achieve our ambitious founding vision while fueling the growth of the network and ecosystem,” Story Protocol posted.
The initiative is part of a broader trend where companies increasingly incorporate digital assets into their balance sheets. Nonetheless, the news wasn’t met with much investor enthusiasm.
Google Finance data showed that CASK’s closing price was $0.5, down 28.25%. In pre-market trading, Heritage’s stock rose slightly by 0.020%.
The decline came amid a broader downtrend. The company, which has a market capitalization of $11.76 million, has seen its stock prices dip more than 85% since going public in late 2024.
Moreover, BeInCrypto Markets data showed that IP’s value dropped by 14.99% over the past day amid a market downturn. The asset wiped out its gains after its recent listing on Upbit, the largest cryptocurrency exchange in South Korea. At press time, it was trading at $5.7.
Besides the accompanying price declines, the IP treasury move has also faced backlash regarding alleged supply control measures. In an X (formerly Twitter) post, a market watcher criticized Story Protocol’s decision to buy-back tokens.
The pseudonymous user called out the project for using manipulative tactics to boost token prices.
Thus, the debate surrounding IP’s token strategy highlights the challenges of balancing innovation with ethical and transparent practices in the digital asset market.
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