- Cosmos Health will allocate 72.5% of funding to build an ETH treasury reserve using BitGo’s institutional-grade custody services.
- The initiative supports Cosmos Health’s digital transformation and expansion into blockchain-powered wellness, supply chain, and consumer programs.
- The company plans to stake ETH holdings and explore yield strategies to enhance ETH-per-share value for long-term shareholder benefits.
Cosmos Health Inc. (NASDAQ: COSM) has announced a $300 million securities purchase agreement to initiate an Ethereum (ETH) digital asset treasury strategy.
ETH Treasury to Support Shareholder Value and Digital Transition
Cosmos Health confirmed it will issue up to $300 million in senior secured convertible promissory notes through a facility supported by a U.S.-based institutional investor. The company plans to allocate a minimum of 72.5% of the net proceeds from each tranche to accumulate ETH for its treasury reserve.
The remaining funds will be used to support growth efforts, including product development and expansion into U.S. manufacturing. The ETH assets will be custodied and staked via BitGo Trust Company, Inc., ensuring security and institutional-grade infrastructure.
CEO Greg Siokas noted, “This financing marks a strategic milestone for Cosmos Health, offering shareholders direct exposure to ETH, currently one of the most widely adopted digital assets in the world.” He highlighted that the initiative is a subsidiary of the overall innovation attitudes of the company and not just a shift in the direction.
Broader Strategic Goals and Blockchain Integration Plans
The company aims to enhance ETH per share for long-term shareholder value. It will also explore additional yield-generating options using the ETH reserves to optimize cash flow and utility. These strategies form part of Cosmos Health’s digital transformation, which also includes e-commerce advancement.
Future blockchain applications are being considered to strengthen areas like global consumer engagement, wellness programs, and supply chain transparency. The treasury initiative complements these developments as Cosmos Health moves toward greater digital integration.
Curvature Securities, LLC, acted as the sole placement agent for the $300 million facility. The company’s entry into the digital asset market marks an extended commitment to innovation within the healthcare sector.
Through this treasury strategy, Cosmos Health is positioning itself to integrate digital assets into its core operations. The funding is structured to support both immediate and long-term initiatives tied to ETH accumulation and blockchain infrastructure.
