Phunware Inc (NASDAQ:PHUN) has announced revenue guidance of $25 million for 2022, including a revised corporate investment policy that provides even more flexibility for diversifying and maximizing returns on cash reserves not immediately required for operating liquidity.
“We were thrilled to announce over $65 million cash-on-hand and are committed to leveraging a healthy balance sheet to support long-term organic and inorganic growth initiatives that seek to mitigate an operational backdrop of rapid inflation,” said Phunware CFO Matt Aune in a statement.
“While we expect to more than double organic revenues to $25 million in 2022, our board has also taken a forward-thinking approach to managing our cash reserves and has chosen to leverage Decentralized Finance (DeFi) as a strategic and tactical competitive advantage, including bitcoin, stablecoins and alternative cryptocurrencies.”
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As part of the updated corporate cash management policy, Phunware may save and/or invest cash reserves in certain specified alternative reserve assets to include, but not limited to:
Phunware said it currently holds about 127 Bitcoins, which were acquired at an aggregate purchase price of approximately $7.75 million and an average purchase price of approximately $61,238 per bitcoin, inclusive of fees and expenses.
The company said it expects to add to its Bitcoin total as a routine part of corporate operations and treasury management for the foreseeable future.
In addition, Phunware said it expects to use reserve-backed stablecoins, including stablecoin collateral loops, to maximize its savings yields in digital US dollar equivalents that can be far more attractive than traditional legacy banking yields in annual percentage yield (APY) terms.
The company said it will not use Tether (USDT) stablecoins as any part of this strategy and fully expects to concentrate its stablecoin exposure on assets such as US Dollar Coin (USDC) and Gemini Dollar (GUSD) amongst other equivalents.
As for alternative cryptocurrencies, Phunware said it expects to initiate numerous diversified DeFi positions and techniques to generate financial returns consistent with financial lending, borrowing, market making, yield farming, collateralized looping, swapping, staking, bridging, wrapping, pooling, and pairing. The company will maintain its DeFi strategies, positions, and techniques as both confidential and proprietary information.
In parallel to formally executing the board approved operating plan for 2022, Phunware also said it will actively manage its cash management and treasury in conjunction with its ongoing board governance, oversight, and compliance activities, including all requisite third party legal, audit and regulatory reviews, disclosures, and filings as appropriate.
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