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Cosmos Health Secures $300M Facility to Build Ethereum Treasury
In a significant development in the crypto space, Nasdaq-listed healthcare company Cosmos Health has secured a massive $300 million facility to build an Ethereum treasury. The company will use these funds to accumulate and hold Ethereum (ETH) as part of its corporate reserves.
According to the agreement, at least 72.5% of net proceeds from each funding round must be allocated towards purchasing and holding ETH. The remaining funds will support working capital and growth projects within the healthcare sector.
Cosmos Health has partnered with a U.S. institutional investor to secure this facility. As part of the deal, the company can draw funds in tranches rather than receiving the full amount upfront. This arrangement allows for greater financial flexibility and control over the allocation of resources.
The Ethereum treasury will be custodied by BitGo Trust Company, which is responsible for securing and staking the accumulated ETH. The company also plans to explore alternative revenue streams from its Ethereum holdings, including staking rewards and decentralized finance (DeFi) strategies.
“We are thrilled to have secured this significant facility,” said Greg Siokas, CEO of Cosmos Health. “By building an Ethereum treasury, our shareholders will now have direct exposure to the world’s second-largest cryptocurrency.”
Cosmos Health is a healthcare company that has been expanding its digital capabilities in recent years. The company trades on Nasdaq under the ticker symbol COSM.
The announcement comes as part of a growing trend among public companies adopting Ethereum treasury strategies. Several firms have recently disclosed similar initiatives, highlighting the increasing recognition of cryptocurrencies’ potential within corporate treasuries.
Cosmos Health’s decision to focus 72.5% of its funds towards purchasing ETH underscores the company’s commitment to embracing digital assets in its financial strategy. This move could potentially diversify their revenue streams and create new opportunities for growth.
The $300 million facility marks a significant milestone for Cosmos Health, underscoring its willingness to take bold steps in adapting to an ever-evolving financial landscape.
Source: coinrevolution.com
