Galmed to invest up to $10M in digital assets as part of new strategy

TEL AVIV - Galmed Pharmaceuticals Ltd. (NASDAQ:GLMD), currently valued at $8.17 million in market capitalization, announced Monday that its Board of Directors has approved a digital asset management strategy that could allocate up to $10 million, approximately 50% of the company’s current cash reserves, to blockchain-based assets. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet.

The biopharmaceutical company has established a dedicated Crypto Committee to evaluate and potentially oversee implementation of crypto-related activities. Galmed is in the process of engaging Tectona Ltd. (TASE:TECT), a specialized crypto treasury management service provider, to advise on its digital asset strategy. The company’s current ratio of 9.02 indicates substantial liquid assets to meet short-term obligations, as revealed by InvestingPro analysis.

The new treasury policy aims to diversify Galmed’s balance sheet through potential activities including covered call options, staking, lending, and yield-generating protocols. The company stated that these steps are intended to optimize treasury performance while maintaining liquidity for operational needs.

"The adoption of digital assets as part of our treasury management program reflects our proactive approach to financial management, innovation, and capital efficiency," said Allen Baharaff, CEO of Galmed.

Separately, Galmed shareholders approved an amendment to the company’s Articles of Association at a Special General Meeting on August 15, increasing authorized share capital from 50 million to 900 million ordinary shares. The company indicated this change provides greater flexibility to raise capital and pursue strategic opportunities.

Galmed Pharmaceuticals, which has historically focused on developing Aramchol for liver disease treatment, is currently seeking to advance the drug for oncological indications while pursuing opportunities to expand its product pipeline. While the stock has experienced a significant decline of over 53% year-to-date, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, though analysts anticipate continued challenges with profitability this year.

The information in this article is based on a company press release statement.

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