Ethena Slides After Mega Matrix Unveils $2bn ENA Treasury Plan

The NYSE-listed company filed a shelf registration of up to $2 billion to finance the strategy, but investors’ first reaction was selling ENA amid choppy sessions for Mega Matrix shares.

ENA traded lower on Friday after briefly testing the mid-$0.70s on Thursday. Early gains in Asia and Europe faded once US trading opened, as selling outweighed buying and pushed the token down by nearly 10% over 24 hours. 

Paring gains

ENA traded at $0.6598 at 17:12 UTC Friday, though it still holds a 3.1% gain for September and added over 12% in August.

Meanwhile, Mega Matrix shares failed to stabilize following the announcement and were down more than 7 percent on Friday through the afternoon.

Not good news?

So, what might explain the drop?

• Announcement vs execution: A shelf registration authorizes Mega Matrix to potentially issue securities and raise capital, but it does not mean immediate purchases of ENA. In selling the token, traders appear to be discounting the uncertainty around timing, size, and execution of any actual buys.
• Equity dilution risk: To fund a big ENA purchase, Mega Matrix may need to issue more shares. That may have made investors less confident that the plan will lead to steady buying of ENA anytime soon.
• Positioning and profit-taking: ENA had already run up more than 15% to $0.7385 before the news. Some traders used the headline as a chance to cash out, leading to the drop.
• Supply overhang watch: Traders are watching token unlocks closely. Around 40.6 million ENA (0.64% of supply) unlocked on 2 Sept, followed by a much larger 171.9 million ENA (2.7%) on 5 Sept. Those extra tokens add short-term selling pressure, making investors cautious even as fundamentals and corporate interest look positive.

The bigger picture

Ethena runs USDe, a synthetic dollar designed to stay stable using delta-neutral trading strategies. Its governance token, ENA, could gain value if the protocol activates a “fee switch” that shares revenues with holders. 

Mega Matrix’s plan would make it one of the first public firms to build a treasury around a stablecoin governance token. The open question is whether this approach will create steady, lasting demand for ENA or just short bursts of interest.

What to watch next

• Actual buying: Does Mega Matrix really start accumulating ENA? Investors want to see amounts, timing, and where the tokens are bought.
• Funding details: How quickly can Mega Matrix raise money, and will it come through equity, debt, or other instruments? The terms will shape confidence.
• Token supply: Watch the big unlocks. Extra tokens hitting the market could offset demand unless there are buybacks or staking programmess that soak up supply.
• Market mood: In strong risk-on markets, a corporate treasury move can lift sentiment. In risk-off markets, even bold announcements fade fast.