Faraday Future bets on the dual engines of encryption and AI for survival! Launching the C10 encryption fund, planning to invest $500 million in on-chain assets.

Faraday Future, which is deeply mired in operational difficulties, announced a strategic transformation by launching the C10 on-chain fund product and focusing on the research and development of Embodied AI. The fund will allocate the top ten crypto assets excluding stablecoins, with an initial investment of 30 million USD and a target total scale of 500 million to 1 billion USD. It is expected to obtain an annualized return of 3% to 5% through on-chain staking to support stock buybacks and core business innovation. This aggressive transformation marks an attempt by this new force in car manufacturing, which once benchmarked TSL, to leverage the short-cycle high liquidity characteristics of the crypto market and the long-cycle value of AI to construct a "dual-engine" growth model.

Cash flow crisis, FF breaks through with crypto and AI strategy

Against the backdrop of ongoing struggles in the electric vehicle business and a tight funding chain, Faraday Future announced a major strategic transformation on August 17, extending its business focus to the fields of cryptocurrency and Embodied AI. The company simultaneously launched an on-chain fund product called "C10 Treasury," which is a market capitalization weighted portfolio of the top ten crypto assets excluding stablecoins. The fund employs an "80% passive tracking + 20% active management" strategy, aiming to achieve excess returns through optimized on-chain asset allocation. Faraday Future Co-Founder and Chief Creative Officer Ian Calderon explained the transformation logic: "The next decade may be a super long bull cycle for the crypto market... FF is building a dual-engine cyclical growth system—combining the long-cycle, high-value EAI (embodied AI) electric vehicle ecosystem with the short-cycle, high liquidity crypto ecosystem. These two flywheels will empower each other and redefine the possibilities of mobility and financial innovation." This move reveals the company's strategy to revitalize the overall situation through rapid capital infusion from its crypto business and long-term empowerment from AI technology.

C10 Fund Anchors Staking Returns, Injecting Capital into Stock Buybacks and R&D

According to the plan, the first phase of the C10 on-chain fund will invest $30 million to purchase crypto assets, with a final target scale locked in the range of $500 million to $1 billion. The fund plans to obtain an annualized return of approximately 3%-5% through staking of the underlying assets on-chain. The company clearly stated that this portion of the on-chain interest income will be specifically used for two major purposes: to support the FF stock buyback plan (to stabilize investor confidence) and to provide funding support for the embodied AI technology innovation of the core electric vehicle business.

The dilemma of mass production remains unresolved, and the prospects for transformation are uncertain.

This radical transformation highlights the severe predicament faced by Faraday Future in its main electric vehicle business. Once regarded as a potential competitor to TSL, this new car-making force has encountered numerous setbacks in its development journey. As of January 2025, its flagship model FF 91 has only produced a cumulative total of 16 units, most of which were delivered to internal employees and brand supporters. The narrowing of traditional financing channels and ongoing pressure on cash flow have forced the company to explore unconventional means such as allocating crypto assets to seek breakthroughs. The market is focused on whether it can truly achieve the construction of a closed-loop ecosystem of "crypto blood transfusion for car manufacturing and AI technology feedback."

Conclusion

Faraday Future's "crypto + AI" dual-engine strategy has become an extreme example of traditional automakers seeking survival in adversity. Its model of allocating corporate funds to on-chain assets and relying on stake returns to support its main business faces significant risks under the high volatility of the crypto market. If the C10 Fund can achieve its scale goals on schedule and stabilize on-chain earnings, it may extend FF's survival window; however, the lack of core vehicle manufacturing capabilities and the challenges of mass production remain the sword of Damocles hanging over this star company. Whether this transformation can serve as a template for physical enterprises to alleviate difficulties through the crypto market still requires time to test.