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Investing.com -- Cosmos Health Inc. (NASDAQ:COSM) stock surged 33.3% after the diversified healthcare group announced it has entered into a securities purchase agreement with a U.S.-based institutional investor for the issuance of up to $300 million in senior secured convertible promissory notes.
The facility, subject to certain conditions, will primarily support the launch of the company’s Ethereum (ETH) digital asset treasury reserve strategy. Under the terms of the agreement, Cosmos Health is required to allocate at least 72.5% of the net proceeds from each tranche closing toward building its digital asset treasury reserve, with the remainder to be used for working capital and growth initiatives.
The company plans to strategically accumulate ETH to enhance long-term shareholder value through increasing ETH-per-share. The digital assets will be custodied and staked through institutional infrastructure provided by BitGo Trust Company, Inc.
Greg Siokas, CEO of Cosmos Health, described the financing as "a strategic milestone" that offers shareholders "direct exposure to ETH, currently one of the most widely adopted digital assets in the world." He added that it provides access to growth capital for strategic initiatives including accelerated product development, R&D innovation, enhanced commercial initiatives, and planned entry into U.S. manufacturing.
The company indicated that its treasury initiative complements ongoing digital transformation and e-commerce efforts, with potential to explore blockchain applications in supply chain traceability, wellness incentive programs, and global consumer engagement.
Curvature Securities, LLC acted as the sole placement agent for the facility.
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