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Investing.com -- Equillium Inc (NASDAQ:EQ) stock tumbled 12.4% after the biotechnology company announced plans to integrate cryptocurrency into its treasury reserve strategy, a significant deviation from its core business of developing treatments for autoimmune and inflammatory disorders.
The San Diego-based company revealed it would begin holding digital currencies as part of its financial and growth objectives while continuing to pursue its biotech mission. CEO Bruce Steel stated the move was made for "diversification, liquidity and long-term capital appreciation potential," with additional updates on the strategy expected during the third quarter of 2025.
Investors appeared concerned about the shift in focus, particularly given the company’s limited cash reserves. Equillium disclosed approximately $11.5 million in cash and cash equivalents as of June 30, 2025, which it projects will fund operations only into the fourth quarter of 2025.
Despite the cryptocurrency initiative, Equillium maintains it will continue advancing its therapeutic pipeline, including preparing EQ504, its novel aryl hydrocarbon receptor modulator, for clinical development. The company noted it has implemented operating changes to decrease expenditures and conserve cash.
The stock’s sharp decline reflects investor skepticism about the biotech firm’s unexpected venture into cryptocurrency, which represents a departure from its established focus on developing novel therapies for severe medical conditions.
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