Winklevoss Secures Board Seats in Leap Therapeutics' $58M Crypto Pivot

Leap Therapeutics (Nasdaq: LPTX) has completed a $58.888 million private placement, marking a strategic shift toward integrating digital assets into its corporate treasury. The funding, led by Winklevoss Capital, will support both the company's digital asset initiatives and its ongoing development of oncology therapies, including FL-501 and sirexatamab. The transaction 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, priced at $0.61439 per unit. The capital infusion, announced on October 6, 2025, is expected to close by October 8, subject to customary conditions.

The private placement includes a governance overhaul, with Winklevoss Capital securing two board seats, including a chairperson. This elevates the board to 12 members, granting the lead investor significant influence over strategic decisions. The firm's involvement extends beyond capital, with strategic support for Leap's digital asset treasury strategy, which aims to build long-term shareholder value through participation in the digital asset market. A portion of the proceeds will also fund clinical trials, including data from sirexatamab's Phase 2 trial in colorectal cancer, set to be presented at the European Society for Medical Oncology (ESMO) Congress on October 19.

The transaction structure reflects a balance between dilution and strategic flexibility. Leap issued 15.2 million shares of common stock, 80.8 million pre-funded warrants, and 72 million common warrants, creating a potential dilution of over 168 million shares if all warrants are exercised. Parcrest International served as the placement agent, receiving $1.5 million in fees and warrants. Legal counsel for Leap was provided by Morgan, Lewis & Bockius LLP, while Cooley LLP represented Winklevoss Capital. The offering utilized exemptions under Regulation D and Section 4(a)(2) of the Securities Act, with a registration rights agreement ensuring future resale of the shares.

The digital asset treasury strategy represents a novel approach for a biotech firm. Leap joins a growing number of companies, such as MicroStrategy and Tesla, in allocating capital to cryptocurrencies. However, the move introduces risks tied to market volatility and regulatory scrutiny. Leap emphasized that its commitment to oncology R&D remains intact, with the Phase 2 trial data for sirexatamab-a key candidate in its pipeline-positioned as a near-term catalyst. The company's dual focus on biotech innovation and digital finance underscores a broader trend of financial diversification in the sector.

Analysts note that the transaction reflects a rare convergence of biotech and crypto finance. Winklevoss Capital, known for its early investments in blockchain, has expanded its portfolio into frontier technologies. The partnership signals confidence in Leap's ability to navigate both scientific and financial challenges. However, the integration of digital assets into a biotech balance sheet introduces complexities, including custody, accounting, and regulatory compliance. Leap's approach will likely be scrutinized as it seeks to align its treasury strategy with shareholder interests while managing the inherent risks of digital assets.

Leap Therapeutics' press release highlights the forward-looking nature of its plans, including potential future updates on its digital asset activities. The company's shares surged 25% following the announcement, reflecting investor enthusiasm for the unconventional strategy. While the move to digital assets may attract a new investor base, it also introduces exposure to market fluctuations that could impact stock performance. The firm's ability to execute its dual strategy-advancing cancer therapies while managing a digital asset portfolio-will be critical to long-term success.

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Source: [1] Leap Therapeutics, Inc. (https://investors.leaptx.com/news-releases/news-release-details/leap-therapeutics-announces-5888-million-private-placement-cash)

[2] Panabee.com (https://www.panabee.com/news/leap-therapeutics-raises-58-9-million-pivots-to-digital-asset-treasury-strategy-under-wi)

[3] VentureBurn (https://ventureburn.com/leap-therapeutics-secures-59m-winklevoss-led-deal-to-build-crypto-treasury/)

[4] Panabee.com (https://www.panabee.com/news/58-9-million-cash-infusion-funds-leap-therapeutics-pivot-to-digital-asset-treasury-strat)

[5] PRNewswire (https://www.prnewswire.com/news-releases/leap-therapeutics-announces-58-88-million-private-placement-in-cash-commitments-led-by-winklevoss-capital-302575729.html)

[6] SEC.gov (https://www.sec.gov/Archives/edgar/data/1509745/000110465925096966/tm2528058d1_ex99-1.htm)

[7] Marketchameleon.com (https://marketchameleon.com/articles/b/2025/10/6/lptx-secures-58-88-million-private-placement-to-launch-digital-asset-treasury-strategy-winklevoss-capital-takes-the-lead)

[8] OneSafe.io (https://www.onesafe.io/blog/leap-therapeutics-crypto-treasury-strategy-biotech)