Bitcoin News Today: iPower Allocates $4.4M to BTC, ETH as It Launches Digital Asset Treasury Strategy

iPower Inc. (Nasdaq: IPW) announced on December 23, 2025, that it has secured a $30 million convertible note financing facility to launch its Digital Asset Treasury (DAT) strategy. The funding is intended to integrate digital assets such as Bitcoin and Ethereum into real-world commerce. The initial tranche of $9 million will allocate $4.4 million toward acquiring these cryptocurrencies, while the remaining funds will repay short-term debt and support working capital needs.

The company aims to position itself at the intersection of e-commerce and digital assets, leveraging its existing infrastructure and data systems to develop compliant, consumer-facing digital asset products. This marks iPower's first major step in executing a broader crypto strategy, building on its $59 million in trailing 12-month revenue.

Lawrence Tan, CEO of iPower, emphasized that the financing strengthens the company's capital structure and provides flexibility for a durable growth strategy. He described the Digital Asset Treasury as a strategic bridge to integrate digital assets into everyday commerce, prioritizing long-term value creation over short-term speculation.

How the Funds Will Be Deployed

The initial $9 million in committed funding is allocated to establish the Digital Asset Treasury, with $4.4 million designated for Bitcoin and Ethereum purchases. The remaining proceeds will be used to repay the company's short-term bridge loan and add liquidity to the balance sheet.

For subsequent tranches of the $30 million facility, approximately 80% of the proceeds will be used to acquire additional digital assets. The company's disciplined approach aims to balance exposure to high-potential cryptocurrencies while maintaining prudent risk controls according to industry analysis.

iPower's strategy also includes evaluating strategic acquisitions and investment opportunities that could generate positive returns on invested capital (ROIC). The company is exploring partnerships with licensed digital asset product providers to develop and scale compliant offerings according to company statements.

Investor and Market Reactions

The announcement reflects a growing trend of institutional and corporate adoption of digital assets as part of broader financial strategies. iPower's move aligns with recent developments in the crypto market, where digital asset treasuries have seen strong inflows despite overall market volatility.

However, the financing also highlights potential risks associated with relying on debt to fund operations and expansion. Critics argue that allocating a significant portion of capital to volatile assets could affect financial stability and investor confidence according to financial analysts.

iPower, however, maintains that the convertible note facility is aligned with long-term growth objectives. The company's CEO emphasized that the strategy is designed to create sustainable value rather than engage in speculative trading according to official statements.

Risks to the Outlook

Like all forward-looking financial strategies, iPower's Digital Asset Treasury initiative carries risks. The company's projections are subject to uncertainties, including market volatility, regulatory shifts, and operational challenges. The press release includes standard cautionary language, noting that actual results could differ materially from expectations according to official disclosures.

Investors should also monitor the deployment cadence of the Digital Asset Treasury and its impact on the company's capital structure as the facility scales. iPower is currently reviewing its operating and capital structures to optimize long-term shareholder value according to management guidance.

The company's recent financial performance adds another layer of complexity. For example, Q1 2026 revenues decreased by 36.78% compared to the prior year. While the Digital Asset Treasury is intended to unlock new revenue streams, it remains to be seen whether the strategy will offset declining traditional e-commerce growth.

What This Means for Investors

The move positions iPower at the intersection of digital assets and e-commerce, leveraging its existing infrastructure to explore new revenue channels. The company's Digital Asset Treasury strategy reflects a broader industry shift toward integrating blockchain technology and digital assets into corporate operations.

For investors, the key questions involve how effectively iPower can manage risk while scaling its new initiatives. The company's use of a convertible note facility allows for flexibility in deployment, but it also introduces potential dilution and liquidity risks.

iPower's strategy also aligns with institutional interest in high-yield, long-term digital asset exposure, particularly within the Bitcoin and Ethereum ecosystems. This trend is evident in recent market data showing strong inflows into digital asset treasuries despite broader crypto volatility according to market analysis.

As the company moves forward, it will need to balance growth ambitions with financial prudence. The success of its Digital Asset Treasury strategy will depend on execution, market conditions, and the ability to integrate digital assets into real economic activity according to financial experts.