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BERKELEY, Calif. - Digital health company Profusa, Inc. (NASDAQ:PFSA), currently valued at $13.37 million and trading at $1.10 per share, announced Monday it is launching a bitcoin treasury strategy through a Securities Purchase Agreement with Ascent Partners Fund LLC for up to $100 million of the company’s common stock. According to InvestingPro data, the stock has declined over 90% year-to-date, reflecting significant investor concerns.
Under the agreement, Profusa will allocate 100% of the net proceeds to purchase bitcoin, provided the company maintains a minimum cash balance of $5 million. The company expects to make its first bitcoin purchases this week.
The equity line of credit (ELOC) allows Profusa to sell shares to Ascent at 97% of the lowest volume-weighted average price during the five trading days following each transaction. The maximum amount for each sale will be the lower of $5 million or 100% of the average daily traded value of Profusa’s stock over the preceding five trading days.
"In an era of accelerating monetary debasement, holding bitcoin on our balance sheet represents a strategic move to safeguard shareholder value and align with a digital future," said Ben Hwang, Profusa’s Chairman and CEO, in the press release.
As part of the agreement, Profusa will issue cashless warrants to Ascent for the purchase of 900,000 shares at an exercise price of $0.01 per share. The total number of shares issuable under the agreement will be limited to 19.9% of Profusa’s outstanding common stock until shareholder approval is obtained.
Profusa develops tissue-integrated sensors for continuous monitoring of biochemical data. The company plans to disclose its bitcoin holdings quarterly as part of its standard financial reporting.
The transaction remains subject to execution of definitive agreements and customary closing conditions. Unlock comprehensive financial analysis and 11 additional ProTips for PFSA with InvestingPro, including detailed insights on valuation metrics and growth prospects.
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