Enlivex Therapeutics (NASDAQ:ENLV) executives used the company’s fourth-quarter and full-year 2025 earnings call to outline what they described as a “dual-engine” strategy that combines clinical-stage drug development with a digital-asset treasury focused on decentralized prediction markets. Executive Chairman Shai Novik and CEO Oren Hershkovitz said 2025 marked a “defining and transformational year,” highlighted by a sharp rise in reported profitability driven primarily by treasury asset appreciation.
2025 results driven by treasury asset revaluation
Novik and Hershkovitz reported that Enlivex generated $1.23 billion in net income for full-year 2025, with diluted earnings per share of $25.48. Hershkovitz said the EPS figure was calculated in accordance with GAAP using the weighted average shares outstanding for the year.
During the Q&A portion of the call, Novik addressed a question about why Enlivex posted large profits while “crypto in general was down hard in 2025.” He said Enlivex’s exposure was specifically to prediction markets via the RAIN token, and that the market had been “very bullish on prediction markets recently,” which he said increased the token’s valuation and contributed to Enlivex’s profits.
Prediction markets treasury strategy centered on RAIN
Management described prediction markets as moving from an “experimental concept” toward a new layer of financial infrastructure, citing what they characterized as increasing trading volumes, expanding utility, and growing institutional engagement. Hershkovitz said the company’s treasury strategy was built around finding a category with “real utility, real adoption, and long-term structural growth,” and that Enlivex selected RAIN as its primary digital treasury reserve asset.
Hershkovitz characterized RAIN as a decentralized, permissionless protocol designed to scale globally and allow users to create and trade markets broadly. He also described a token model in which the protocol applies a 5% fee on total trading volume, with half of that fee used to buy back tokens and permanently burn them, which he said links protocol usage to token supply dynamics.
Novik said the company believes it offers “one of the only institutional-grade GAAP-compliant vehicles in equity markets” through which investors can access prediction markets exposure within a traditional public equity framework.
RAIN token option, debt financing, and share repurchase authorization
Novik said Enlivex has a strategic partnership with the Rain Foundation, which he described as independently overseeing the decentralized prediction markets Rain Protocol. Through that partnership, he said Enlivex secured an exclusive one-year option to acquire up to 275 billion Rain tokens at a fixed price of $0.0033 per token, which he said was “substantially below” the token’s price at the time of the call.
He also outlined several updates the company announced “yesterday,” including:
- $21 million debt financing agreement with a New York-based institutional fund manager. Novik said net proceeds are planned to support clinical development and acquire additional RAIN tokens.
- A planned purchase of an additional 3 billion RAIN tokens for an aggregated purchase price of $10 million, which Novik said would be at a substantial discount to the token’s closing price two days earlier.
- An extension of the RAIN token purchase option’s expiration date from November 30, 2026 to December 31, 2027, with the same exercise price.
- Board approval of a share repurchase program of up to $20 million, subject to satisfying applicable regulatory requirements.
Novik added that the issued note is convertible after a 90-day holding period and converts into ordinary shares at a fixed conversion price of approximately $2.69, which he said represented a 264% premium to the Nasdaq closing price of the stock on the prior Friday. He said the premium and conversion limitations reflected the institutional investor’s conviction in the strategy.
Clinical progress: FDA cleared Phase IIb trial for knee osteoarthritis
While much of the call focused on the treasury strategy, management reiterated that Enlivex’s clinical platform remains central to its long-term value. Novik and Hershkovitz said the company’s lead program, Allocetra, has shown “clinically meaningful and statistically significant results” with a favorable safety profile, including durable improvements in pain and function in osteoarthritis patients.
Management reported that the FDA cleared the company’s investigational drug application for a late-stage Phase IIb clinical trial in knee osteoarthritis. Hershkovitz described it as a multicenter, multicountry, randomized, double-blind, placebo-controlled Phase IIb trial in age-related moderate to severe knee osteoarthritis.
Looking ahead, Hershkovitz said the company expects to generate three- and six-month top-line data in 2027, which he said would set the stage for a pivotal Phase III trial.
Hershkovitz also highlighted the prevalence of osteoarthritis, stating it affects more than 32 million Americans today and is projected to impact 78 million Americans by 2040. He said the estimated market is about $7 billion and expected to expand globally.
Management addresses valuation discount and financing implications
In response to a question about the company’s market capitalization trading at a discount to its treasury valuation, Novik said digital treasury companies have been “out of favor,” leading to net asset value discounts. He said the company hopes continued growth in the prediction market ecosystem and RAIN could help diminish that discount over time.
Asked whether Enlivex’s model changes how a clinical-stage biotech can be financed, Novik said earlier-stage biotech funding availability has become scarce in the past two years. He said Enlivex designed its model to potentially self-fund using a small percentage of treasury asset appreciation, with investors participating in potential value from both the clinical and treasury sides.
Management said the key drivers for scaling the model include continued growth of the prediction markets ecosystem—particularly decentralized prediction markets and RAIN’s potential position within them—alongside progress in Enlivex’s longevity-focused clinical programs.
About Enlivex Therapeutics (NASDAQ:ENLV)
Enlivex Therapeutics is a clinical-stage biopharmaceutical company headquartered in Ness Ziona, Israel, that focuses on developing innovative immunotherapies for life-threatening inflammatory conditions. Founded in 2015, the company trades on the NASDAQ under the symbol ENLV and leverages a proprietary cell-based platform to restore immune balance in critical care settings.
The company’s lead product candidate, Allocetra, comprises reprogrammed apoptotic cell therapy designed to recalibrate the innate immune system.
