Silo Pharma allocates $1 million to Bitcoin holdings

Published 05/06/2025, 14:26
Silo Pharma allocates $1 million to Bitcoin holdings

SARASOTA, FL - Silo Pharma, Inc. (NASDAQ:SILO), a biopharmaceutical company in the developmental stage with a market capitalization of $4.12 million, has announced its Board of Directors’ decision to invest up to $1 million in Bitcoin as part of its treasury reserves. The move aims to diversify the company’s assets by incorporating a digital store of value, which they believe presents considerable potential for appreciation. According to InvestingPro data, the company maintains a healthy current ratio of 4.73, indicating strong short-term liquidity.

Eric Weisblum, CEO of Silo Pharma, stated that the acquisition of Bitcoin is designed to act as a hedge against inflation and to potentially enhance long-term shareholder value. The company, which specializes in novel therapeutics and drug delivery systems for conditions such as PTSD, chronic pain, and CNS diseases, sees this strategic investment as a means to preserve and optimize its financial standing over time. InvestingPro analysis reveals an impressive gross profit margin of 91.9%, though analysts anticipate profitability challenges ahead. Get access to 8 more exclusive InvestingPro Tips to better understand SILO’s financial outlook.

Silo Pharma’s current portfolio features several innovative programs, including SPC-15 for the treatment of PTSD and SP-26 for fibromyalgia and chronic pain, as well as preclinical assets aimed at Alzheimer’s disease and multiple sclerosis. The company collaborates with leading universities and laboratories to advance its research endeavors. Despite recent stock volatility, with shares down over 35% year-to-date, the company maintains a strong balance sheet with more cash than debt.

The press release also contained forward-looking statements, cautioning that these are subject to various risks and uncertainties that could significantly affect actual results. Factors that might influence outcomes include changes in revenue sources, economic conditions, development challenges, customer retention and expansion, and consumer spending fluctuations.

This strategic decision to purchase Bitcoin reflects Silo Pharma’s approach to managing its treasury holdings and is based on a press release statement issued by the company. The company has not disclosed any further details regarding the timing or structure of the Bitcoin purchase.

In other recent news, Silo Pharma announced a public offering priced at $0.60 per share, with an expected closure date of May 16, 2025. The offering includes shares of common stock and warrants, anticipated to generate approximately $2 million in gross proceeds, intended for general working capital. Silo Pharma is advancing its PTSD treatment, SPC-15, through a service agreement with Resyca BV for a drug-device study and a partnership with Veloxity Labs for bioanalysis. These initiatives are part of preparations for an FDA Investigational New Drug (IND) application. Additionally, Silo has engaged Frontage Laboratories for a safety study, responding to an FDA request for a 7-day toxicology large animal study, which is crucial for the IND process. In other developments, Silo reported positive preclinical results for SP-26, its ketamine implant for fibromyalgia, meeting all study endpoints and supporting the move toward clinical trials. The company is collaborating with Columbia University for preclinical studies and holds exclusive global rights to SPC-15. These efforts underscore Silo Pharma’s commitment to developing innovative treatments for psychiatric and chronic pain conditions.

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