Nuvve Holding enters asset management agreement for $3 million crypto portfolio

Nuvve Holding Corp. (NASDAQ:NVVE), a micro-cap company with a market value of $12.56 million and trailing twelve-month revenue of $5.44 million, announced Wednesday that it has entered into an Asset Management Agreement with DeFi Technologies, Inc. to manage its cryptocurrency treasury, according to a statement based on a recent SEC filing. InvestingPro analysis indicates the company has been facing significant financial challenges, with its stock down 86% over the past year.

Under the agreement, which took effect Sunday, DeFi Technologies will provide discretionary investment management services for Nuvve’s crypto assets. The initial account will consist of at least $3 million, which Nuvve agreed to allocate under the terms of the agreement.

The Asset Manager is expected to invest the account assets primarily using a long-only strategy focused on $HYPE, the native digital asset of the Hyperliquid network. The agreement also allows for activities such as facilitating and staking $HYPE.

For the first year of the agreement, Nuvve will pay DeFi Technologies a quarterly fee, with each payment being the greater of $150,000 or 1.5% of the account assets’ value. The value will be based on the ten-day volume-weighted average price of the assets on Coinmarketcap prior to each payment date. After the first year, the fee will shift to a quarterly asset-based fee of 0.5% of the account assets, also calculated using the volume-weighted average price. All fees will be paid in cash.

The agreement has an initial term of ten years from the effective date and will automatically renew for additional one-year periods unless either party provides notice to terminate. Nuvve may terminate the agreement without cause with 30 days’ prior written notice, but in such cases, it will be required to pay an early termination fee. This fee will be the greater of five times the management fees paid in the most recent year or $1 million.

On Sunday, Nuvve’s board of directors also approved an expansion of its digital asset strategy, allowing up to 100% of the company’s cryptocurrency portfolio to be allocated to $HYPE.

Nuvve Holding Corp. is listed on the Nasdaq Stock Market under the ticker NVVE. This information is based on a press release statement included in a recent SEC filing.

In other recent news, Nuvve Holding Corp. announced an underwritten public offering of approximately 5 million shares of common stock at $0.95 per share, aiming to raise about $4.8 million before expenses. This offering is part of the company’s strategy to invest in cryptocurrency, specifically purchasing HYPE, the native token of Hyperliquid, through its digital asset subsidiary. Lucid (NASDAQ:LCID) Capital Markets is acting as the sole book-running manager for this offering, which remains subject to market conditions. Additionally, Nuvve’s subsidiary, Nuvve New Mexico, LLC, has signed an employment agreement with Ted Smith to serve as CEO, effective March 2025.

The company also announced the appointment of Laura Huang and Brian Johnson to its Board of Directors, bringing expertise in organizational transformation, mobility innovation, and strategic finance. These appointments are part of Nuvve’s efforts to drive its growth strategy. The public offering, which led to a 15% drop in stock price, is subject to market conditions with no guarantee on its completion or terms. Nuvve’s strategic moves, including its cryptocurrency investment and board appointments, reflect its broader goals of innovation and growth.

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