Intel stock spikes after report of possible US government stake
CHICAGO - Cosmos Health Inc. (NASDAQ:COSM) announced Tuesday it has commenced purchases of Ethereum (ETH) as part of its digital asset treasury reserve strategy. The diversified healthcare group, currently valued at $22.27 million, completed an initial $1 million ETH purchase through its financing facility of up to $300 million with a U.S.-based institutional investor. According to InvestingPro data, the company’s stock has shown significant volatility, with a beta of 4.36.
Greg Siokas, CEO of Cosmos Health, said the company aims to transform into "a significant force in the crypto space" by leveraging the full potential of its facility. He noted the company is adding Ethereum to its balance sheet alongside cash holdings. This move comes as the company faces challenges, with InvestingPro analysis showing negative EBITDA of -$13.03 million in the last twelve months.
"ETH’s growing adoption by institutional investors, its inclusion in ETFs, the proposed expansion of cryptocurrency access in retirement plans, and the increasing enterprise use of Ethereum-based applications all reinforce our confidence in this strategic move," Siokas stated.
Cosmos Health, incorporated in 2009, operates as a vertically integrated global healthcare group with interests spanning pharmaceutical manufacturing, distribution, and telehealth services. The company owns several proprietary brands and distributes pharmaceuticals and parapharmaceuticals in Greece and the UK.
The company’s manufacturing subsidiary, Cana Laboratories S.A., is licensed under European Good Manufacturing Practices and certified by the European Medicines Agency.
This announcement represents Cosmos Health’s first step in implementing its digital asset treasury strategy, according to the company’s press release statement. With earnings scheduled for August 15, investors can access deeper insights and additional ProTips through InvestingPro. Current analysis suggests the stock may be undervalued compared to its Fair Value, presenting a potential opportunity for investors following the company’s strategic shift.
In other recent news, Cosmos Health Inc. has secured a significant $300 million convertible note facility through a securities purchase agreement with a U.S.-based institutional investor. This financial arrangement is set to support the company’s Ethereum digital asset treasury reserve strategy, with 72.5% of the net proceeds from each tranche designated for this purpose. The remaining funds will be allocated for working capital and growth initiatives. In another development, Cosmos Health has entered the U.S. market by partnering with DolCas Biotech LLC for the manufacturing of nutraceutical products. This strategic agreement allows Cosmos Health to produce these products in GMP-certified facilities in the United States. The move is aimed at reducing tariff exposure and cross-border logistical risks, while also enhancing production control. These recent developments reflect Cosmos Health’s efforts to expand its operations and financial strategies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.