ECD Automotive Design engages Arca Labs for Bitcoin treasury initiative

KISSIMMEE, Fla. - ECD Automotive Design, Inc. (NASDAQ:ECDA) announced Wednesday it has engaged Arca Labs LLC to provide operational consulting services for the company's previously announced Bitcoin treasury initiative. This move comes as the company faces significant financial challenges, with InvestingPro data showing the company is quickly burning through cash with a negative free cash flow of over $10 million in the last twelve months.

Arca Labs, the innovation division of Arca, will assist ECD in establishing a corporate account with a qualified digital-asset custodian. This support includes documentation, onboarding, and implementing security protocols to enable digital-asset custody and transaction execution.

"Our collaboration with Arca Labs underscores ECD's commitment to executing our Bitcoin treasury strategy with the same discipline and precision that define how we build our vehicles," said Vicky Hay, Chief Financial Officer of ECD Automotive Design.

According to the announcement, Arca Labs will provide non-discretionary operational support only and will not assist the company in purchasing assets, handling funds or securities, providing investment advice, or exercising any trading discretion.

ECD Automotive Design, which trades on Nasdaq under the ticker ECDA, specializes in restored luxury vehicles, combining classic English design with modern performance. The company restores various models including Land Rover Defenders, Range Rover Classics, Jaguar E-Types, Ford Mustangs, and Toyota FJs.

The company operates from its 100,000-square-foot facility known as the "Rover Dome" in Kissimmee, Florida, where it employs 102 staff members, including 67 craftsmen and technicians.

This announcement marks the next phase in ECD's digital-asset and treasury initiatives that were announced earlier this year, according to the company's press release statement.

In other recent news, ECD Automotive Design announced a partnership with Chelsea Truck Company to create a line of customized Land Rover Defender L663 and INEOS Grenadier vehicles. This collaboration, branded as "ECD × CTC," will see vehicles assembled at ECD's Florida facility, combining British design elements with ECD's craftsmanship. Additionally, ECD Automotive Design received SEC approval to sell up to $300 million in common stock under an existing equity purchase facility agreement, effective from November 3. This move allows the company to raise capital through stock sales.

Moreover, ECD Automotive Design has regained compliance with Nasdaq's minimum bid price requirement, maintaining the necessary threshold for 16 consecutive business days. The company also unveiled its first custom Porsche 911 build, featuring a turbocharged engine and various performance upgrades. These developments highlight ECD's ongoing expansion and diversification in the luxury automotive market.

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