Leap Therapeutics Funds Cancer Research with Crypto Treasury, Balancing Volatility and Innovation

Leap Therapeutics (NASDAQ:LPTX) shares surged 25% following the announcement of a $58.88 million private placement led by Winklevoss Capital, a move aimed at initiating a digital asset treasury strategytitle5^[5]. The transaction, structured as a private investment in public equity (PIPE), involves the issuance of 95,849,353 shares of common stock or pre-funded warrants and warrants to purchase an additional 71,887,008 shares at $0.5335 per share, priced at $0.61439 per unit. Proceeds will be allocated to cryptocurrency purchases and the continued development of the company's oncology pipeline, including FL-501 and sirexatamab, the latter of which recently completed a Phase 2 trial in colorectal cancer.

Winklevoss Capital, founded by Cameron and Tyler Winklevoss, will provide strategic support to structure and execute the digital asset treasury strategy. The investment also grants Winklevoss Capital two board seats, including one chairperson position, as Leap Therapeutics expands its board to 12 members. The company plans to disclose further details on its cryptocurrency acquisition strategy in the near term, though specific assets to be purchased remain undisclosedtitle5^[5].

The deal reflects a growing trend among public companies to diversify treasuries into digital assets. Leap Therapeutics joins entities like MicroStrategy and Tesla in leveraging cryptocurrencies as a reserve asset. However, the strategy introduces volatility risks, as the company's stock price is expected to correlate closely with the value of its crypto holdings. The transaction, which requires regulatory approvals, is anticipated to close by October 8, 2025.

Legal advisors for the transaction include Morgan, Lewis & Bockius LLP for Leap Therapeutics and Cooley LLP for Winklevoss Capital. The private placement relies on exemptions from U.S. securities registration requirements, with a registration rights agreement in place to facilitate future resale of the issued shares. Leap Therapeutics emphasized that the capital will also support clinical development, particularly for sirexatamab, which is set to present updated data at the European Society for Medical Oncology (ESMO) Congress in October.

The stock's 25% intraday gain underscores investor enthusiasm for the dual-purpose strategy of combining biotech innovation with digital asset exposure. With a current market capitalization of $22.11 million, Leap Therapeutics' move highlights the intersection of speculative finance and traditional R&D funding in the biotechnology sector.