Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Undisclosed Repayment Provision Sets Brevan Howard in Opposition to Berachain

Undisclosed Repayment Provision Sets Brevan Howard in Opposition to Berachain

Bitget-RWA2025/11/24 19:34
By:Bitget-RWA

- Brevan Howard secured a $25M refund clause in Berachain's $142M Series B, allowing recovery if BERA token underperforms within a year. - The SAFT-linked mechanism requires $5M deposit post-TGE, creating liquidity risks if Berachain must repay $25M by 2026. - BERA's 67% price drop to $1 raises doubts about clause viability, while legal experts call such terms "extremely rare" in token financing. - The undisclosed clause highlights tensions in crypto VC structures, potentially setting precedents for prefer

Nova Digital Fund, managed by Brevan Howard, has landed an uncommon, low-risk investment in

, a blockchain company, by securing a $25 million refund entitlement linked to its Series B fundraising, . Documents reviewed by Unchained reveal that this provision within a year if the token fails to meet performance expectations, essentially shielding the investment from market swings. This deal, co-led with Framework Ventures, was part of a $142 million fundraising round that gave Berachain a $1.5 billion valuation in early 2025 .

This refund feature, structured through a simple agreement for future tokens (SAFT),

to Berachain within 30 days after the token generation event (TGE), which took place on February 6, 2025. Should the fund opt to use its right by February 6, 2026, Berachain would need to raise $25 million in cash to return the investment—a move that could create liquidity issues for the startup . Legal professionals in the sector describe such terms as "highly unusual" in token deals, pointing out that refund rights are generally only available if a project fails to issue tokens, not after TGE .

Since then, BERA’s value has dropped significantly, trading near $1 in November 2025—a 67% decline from Brevan’s $3 entry price per token. The token’s fully diluted market cap is now $536.7 million,

, casting doubt on the practicality of the refund clause in a declining market. The one-year lockup for investor tokens adds further complications: its BERA tokens, though the prospect of recovering $25 million remains attractive.

Berachain is an Ethereum-compatible Layer 1 blockchain built with the

SDK, and has gained a devoted following thanks to its roots in the 2021 "Bong Bears" NFT project. The Series B round also saw investments from Arrington Capital, Polychain, and Tribe Capital, but it is not clear if these investors received similar guarantees . Legal analysts have raised concerns about whether the clause can be enforced, especially since it was not made known to all stakeholders, if the refund is exercised.

This deal highlights increasing doubts about crypto venture capital models, where conventional risk-return principles often conflict with innovative financial structures. While Brevan Howard’s strategy limits potential losses, some warn it could pave the way for special treatment in token offerings, undermining confidence among both retail and institutional participants

.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Bitcoin Updates: Saylor Questions MSCI's New Classification, Stands by MSTR's Main Business Model

- Michael Saylor defends MicroStrategy's operational core, rejecting fears of $8.8B outflows if MSCI reclassifies it as a crypto-heavy entity. - JPMorgan warns index exclusion could trigger mechanical selling, worsening liquidity and capital-raising challenges amid Bitcoin's 30% price drop. - MSTR's Bitcoin-backed credit program faces scrutiny as its stock plummets 67% and premium to holdings collapses to 1.1X, signaling eroding investor confidence. - MSCI's January 2026 decision will test MSTR's narrative

Bitget-RWA2025/11/24 22:44

Bitcoin Updates: Miners Offload $2.6 Billion in Holdings Amid Escalating AI Power Struggle

- Bitcoin's 30% drop below $90,000 triggered mass miner liquidations, with $2.6B in BTC sold as hashprice hit $34.49/PH/s - an all-time low. - Surging energy costs in key mining hubs like Texas (18% YOY Q3 2025) and AI-driven grid demand intensified operational pressures on miners. - ETF outflows reached $1.425B in five days, while BlackRock-led $40B AI infrastructure consortium signals industry shift toward AI workloads over Bitcoin mining. - Miners like Core Scientific pivot to AI contracts (3-4x Bitcoin

Bitget-RWA2025/11/24 22:44
Bitcoin Updates: Miners Offload $2.6 Billion in Holdings Amid Escalating AI Power Struggle

Bitcoin News Today: Bitcoin miners face a fight for survival as they contend with soaring hashrates and falling prices

- Bitcoin miners face profitability decline as record hashrate clashes with falling prices, extending hardware payback periods beyond 1,200 days. - Operators pivot to HPC/AI services to offset losses, while ETFs show volatile redemption/inflow swings amid institutional re-entry and Abu Dhabi's IBIT stake tripling. - JPMorgan upgrades mining stocks citing $19B HPC contracts, but record-low Bitcoin reserves ($2.6B liquidated) highlight deteriorating economics with hashprice at $34.49/PH/s. - Sector survival

Bitget-RWA2025/11/24 22:44
Bitcoin News Today: Bitcoin miners face a fight for survival as they contend with soaring hashrates and falling prices