Ethereum News Today: Cosmos Health Allocates 72.5% of $300M to Ethereum Treasury Strategy

Cosmos Health Inc., a Nasdaq-listed healthcare company, has announced a $300 million financing facility to establish an Ethereum (ETH) treasury reserve strategy, marking its formal entry into corporate cryptocurrency holdings [1]. Under the agreement, the company will allocate at least 72.5% of the net proceeds from each tranche to Ethereum reserves, with the remaining portion earmarked for working capital and growth initiatives, including product development and R&D innovation [1].

The financing involves senior secured convertible promissory notes and was facilitated with a U.S.-based institutional investor, with Curvature Securities, LLC acting as the sole placement agent [1]. Cosmos Health will hold and stake its Ethereum through BitGo Trust Company, an institutional-grade digital asset custodian, ensuring secure and compliant management of its cryptocurrency holdings [1].

Greg Siokas, CEO of Cosmos Health, emphasized that this strategic move is not a short-term pivot but part of a broader commitment to innovation, aiming to offer shareholders direct exposure to ETH, which is among the most widely adopted digital assets globally [1]. The company also plans to explore additional yield-generating strategies, potentially leveraging decentralized finance (DeFi) protocols and validation rewards to optimize cash flow and utility from its ETH position [1].

In addition to Ethereum treasury management, Cosmos Health will investigate blockchain-based applications for supply chain traceability, wellness incentive programs, and global consumer engagement, aligning with its mission to drive long-term sustainable value creation [1]. This initiative follows recent corporate activities, including the acquisition of Texas-based telehealth platform ZipDoctor, Inc., which expanded the company’s digital health footprint [1].

Cosmos Health joins a growing trend of public companies allocating treasury funds to Ethereum. Earlier adopters include BitMine Immersion Technologies, which has accumulated over $3 billion in ETH holdings, and SharpLink Gaming, which recently added $264 million in ETH to its treasury [1]. BioNexus Gene Lab, another Nasdaq-listed company, became the first firm to officially approve Ethereum as its primary treasury asset earlier this year [1].

Corporate treasuries now collectively hold 3.04 million ETH, representing 2.51% of Ethereum’s circulating supply, according to data from Strategic Ether Reserves [1]. The recent institutional interest in Ethereum is also evident in record inflows into Ethereum products, with $1.59 billion in net inflows recorded in a single week in July, surpassing Bitcoin’s $175 million outflows [1].

Analysts have projected up to $20 billion in annual ETH demand from institutional sources, highlighting the increasing institutional adoption of Ethereum [1]. However, Ethereum’s constrained annual issuance of approximately 0.8 million new tokens may create upward pressure on the asset’s value in the face of rising demand [1].

The move by Cosmos Health underscores a broader evolution in corporate treasury strategies, with healthcare technology firms exploring Ethereum’s programmable money capabilities to support international operations, supply chain transparency, and patient incentive programs that traditional financial systems struggle to deliver efficiently [1].

Source:

[1] Nasdaq-listed Cosmos Health Secures $300M for Ethereum Treasury

https://cryptonews.com/news/nasdaq-listed-cosmos-health-secures-300m-for-ethereum-treasury/