Brevan Howard offered $25 million ‘refund right’ for its Berachain investment: Unchained

Brevan Howard’s venture capital bet on Berachain allegedly came with near-zero risk, according to a new report by Jack Kubinec, writing for Unchained. Documents published on Monday show that Berachain granted Nova Digital — a crypto-focused Brevan subsidiary — a year-long refund right on its $25 million Series B investment.

In other words, Brevan could potentially recoup its investment in Berachain’s Feb. 6 token generation event after co-leading the project’s $69 million funding round at a $1.5 billion valuation. The firm reportedly has until Feb. 6, 2026, to exercise this right.

"The refund clause means that, unlike a traditional venture investment, Brevan's fund didn’t take on any risk to its principal. If Berachain's BERA token performs well, the fund will reap the rewards. If BERA flops, the fund can ask for its money back," Kubinec wrote.

BERA, trading at around $1, is down about 67% from Brevan’s investment price of $3 per token. The token has a current fully diluted valuation of $536.7 million, according to The Block’s price page.

That Series B was co-led with Framework Ventures, with participation from Arrington Capital, Hack VC, Polychain, and Tribe Capital. Berachain also raised a $42 million Series A in 2023. It is unclear if other investors also received refund rights.

According to a side letter signed by Berachain Foundation General Counsel Jonathan Ip and Nova Director Carol Reynolds, Nova may request "some or all" of its investment as part of a simple agreement for future tokens (SAFT) deal. To activate the arrangement, Nova was required to deposit $5 million into Berachain within 30 days of the TGE.

Of note, Nova operations were led by Kevin Hu, a BlackRock and Dragonfly Capital veteran who personally invested in Berachain's seed round. Brevan acquired the Nova Digital Master Opportunities Fund from venture firm Dragonfly in 2023.

Berachain, an Ethereum-compatible Layer 1 built using the Cosmos SDK, was one of the most anticipated blockchain launches of 2025. The protocol was born out of a 2021 NFT series called "Bong Bears" and quickly gained a cult-like following.

The Block reached out to Berachain and Brevan Howard Digital for comment.