Cosmos Health has contracted to issue secured convertible bonds of up to 300 million USD to fund its Ethereum reserve strategy.
The raised capital will be used to purchase Ethereum and enhance performance through staking, while also supporting product research, business expansion, and production facilities in the United States.
MAIN CONTENT
Raise a maximum of 300 million USD through secured convertible bonds.
At least 72.5% of net capital is used to purchase ETH and staking through BitGo.
The remaining capital is allocated for R&D, business expansion, and developing a factory in the United States.
How has Cosmos Health raised funds for its Ethereum strategy?
Cosmos Health has contracted to issue secured convertible bonds with an institutional investor in the United States, expecting to raise a maximum of 300 million USD.
This fundraising supports the company's ETH reserve strategy. The company commits to using at least 72.5% of the funds raised to purchase ETH, thereby increasing the 'ETH per share' index.
The issuance of convertible bonds also allows investors to convert into company shares, helping to improve capital and increase liquidity for Cosmos Health.
How will the purchased ETH be managed and used?
The ETH obtained from fundraising is sent to a wallet managed by BitGo and will be staked to generate profits, increasing the value per share.
BitGo, a reputable digital asset management firm, is responsible for keeping ETH in a highly secure state and ensuring effective staking. The increase in 'ETH per share' directly reflects the underlying asset value of the company.
Cosmos Health leverages ETH staking not only to hold assets but also to generate profits for shareholders, which is a modern digital financial strategy aligned with the trends of the cryptocurrency market.
Blockchain Financial Analyst, 2024
What are the goals for the remaining capital?
The portion of the capital not used to purchase ETH is allocated by Cosmos Health for product research and development, business expansion, and building a factory in the United States.
Developing domestic production facilities contributes to increasing production capacity and enhancing competitive position in the market. At the same time, R&D investment helps the company improve technology and expand its product line.
In addition, the company plans to expand new revenue sources to optimize cash flow and effectively utilize ETH assets.
Frequently Asked Questions
How much capital has Cosmos Health raised from convertible bonds?
The fundraising plan aims to raise up to 300 million USD through secured convertible bonds with a U.S. investor.
What is the majority of the raised capital used for?
At least 72.5% of net capital is invested in purchasing ETH and performing staking to increase the company's asset value.
What role does BitGo play in Cosmos Health's strategy?
BitGo safely manages ETH and performs staking, helping to increase 'ETH per share'.
How will the remaining capital be used?
Use the remaining capital for product research and development, business expansion, and investing in building a factory in the United States.
How does this strategy affect shareholders?
Increasing ETH assets and staking enhances profits, contributing to the growth of share value and liquidity for shareholders.
Source: https://tintucbitcoin.com/cosmos-health-goi-von-300-trieu-usd-eth/
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