Equillium Inc (NASDAQ:EQ) stock plunged 12.4% following the company’s announcement that it will integrate cryptocurrency holdings into its treasury reserve strategy—marking a notable shift away from its core focus on developing treatments for autoimmune and inflammatory diseases.
Based in San Diego, Equillium revealed plans to hold digital assets as part of its financial diversification and growth goals, while affirming its commitment to its biotech mission. CEO Bruce Steel explained the decision as aimed at “diversification, liquidity and long-term capital appreciation potential,” with further updates expected in the third quarter of 2025.
However, investors reacted cautiously amid concerns about the company’s relatively limited cash reserves—approximately $11.5 million as of June 30, 2025—enough to support operations only through the fourth quarter of 2025.
Despite the new cryptocurrency initiative, Equillium confirmed it will continue advancing its therapeutic pipeline, including preparing EQ504, a novel aryl hydrocarbon receptor modulator, for clinical development. The company has also taken steps to reduce operating costs and preserve cash.
The sharp stock decline reflects investor wariness over the biotech firm’s unexpected pivot into digital currencies, a move seen as diverging from its established focus on innovative medical therapies.
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