Cosmos Health (NASDAQ: COSM) on Wednesday said it has secured $300 million financing facility to launch its corporate Ethereum treasury reserve.
It became the 65th company to adopt the ETH treasury reserve strategy. The company will rank among the top 10 corporate ETH treasuries, including BitMine Immersion, SharpLink Gaming, and The Ether Machine, after it officially launches its ETH treasury.
In a press release on August 6, Nasdaq-listed Cosmos Health disclosed a securities purchase agreement with a US-based institutional investor.
The company revealed $300 million from the issuance of senior secured convertible promissory notes. It will be used to launch its Ethereum digital asset treasury (DAT) reserve strategy.
Cosmos Health will allocate at least 72.5% of the net proceeds to build its Ethereum treasury reserve. Also, it plans to stake ETH and use yields to optimize cash flow and utility from ETH holdings.
The company will buy ETH to boost shareholder value. It revealed Bitgo as the custody partner for its ETH assets.
Greg Siokas, CEO of Cosmos Health, said it is a strategic milestone for the company and shareholders to get direct exposure to ETH. The company will contribute to the Ethereum ecosystem in the long term.
Cosmos Health saw its stock price skyrocket nearly 30% on Wednesday. Notably, investors had moved fast to buy stocks of any company announcing an Ethereum treasury reserve strategy.
COSM stock price closed 30% higher at $1.150. The 24-hour low and high were $0.725 and $1.128, respectively.
The trading volume spiked more than 10 million, multiple times its average volume of 455,169, as per Yahoo Finance data. It signals that companies with an Ethereum treasury reserve strategy have high demand.
Cosmos Health claimed that its ETH treasury will help its ongoing digital transformation and e-commerce efforts.
The company plans to explore blockchain technology’s use cases in supply chain traceability, wellness incentive programs, and consumer engagement around the globe.
Tom Lee’s BitMine Immersion Technologies (BMNR), The Ether Machine (DYNX), and GameSquare (GAME) recently purchased additional ETH in millions.
Meanwhile, total ETH holdings of SharpLink Gaming (SBET) reached $1.91 billion.
According to Stategic ETH Reserve data, the total ETH reserve across 65 companies surpassed 3.04 million ETH, valued at over $11.09 billion.
BitMine Immersion is the largest corporate Ethereum holder with 833.1K ETH worth $3.05 billion.
Ethereum price climbed almost 2% as whales and institutions continued to purchase ETH worth millions.
The price was trading at $3,655, with a 24-hour low and high of $3,547 and $3,674, respectively.
However, the trading volume dropped more than 20% in the last 24 hours. This indicated interest among only some traders amid heightened uncertainty.
CoinGlass data also showed moderate buying activity in the derivatives market. At the time of writing, the total ETH futures open interest jumped 1% to $46.51 billion in the last 4 hours.
ETH futures OI on CME and Binance increased by more than 1.60% and 1.20% in the last 4 hours, respectively. This indicated that derivatives traders anticipate a further rally in ETH price.
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