TLDR
- Propanc Biopharma executed $100 million investment agreement with crypto-focused Hexstone Capital
- Company received $1 million initially with remaining $99 million accessible over 12-month period via convertible preferred stock
- Proceeds will fund digital asset treasury construction and PRP cancer therapy advancement toward 2026 trials
- Share price collapsed 10.5% following disclosure with 46.7% monthly loss recorded
- Move aligns with growing biotech trend of adopting crypto strategies to attract capital
Propanc Biopharma has completed a $100 million financing deal with Hexstone Capital to establish a cryptocurrency treasury. The agreement marks the Australian biotech’s entry into digital assets while maintaining focus on cancer treatment development.
The investment structure delivers $1 million immediately to Propanc. Another $99 million becomes available over the following year through convertible preferred stock terms.
Hexstone Capital specializes in crypto treasury companies. The family office maintains exposure to Bitcoin, Ethereum, Solana, Dogecoin, Injective, and additional digital assets through portfolio holdings.
Propanc plans to allocate funding between two separate initiatives. Digital asset acquisitions form one component while cancer therapy research constitutes the other priority.
PRP Therapy Advances Toward Clinical Stage
The company’s lead product PRP represents a proenzyme-based oncology treatment. Propanc has targeted the second half of 2026 for initiating first-in-human clinical trials.
CEO James Nathanielsz characterized the capital infusion as a “transformative phase” for operations. The funding aims to bolster the balance sheet while progressing the company’s proenzyme technology platform.
PRP targets patients dealing with metastatic cancer from solid tumors. The therapy may also address chronic diseases through its proenzyme action mechanism, according to Nathanielsz.
Propanc has not identified which cryptocurrencies will populate its treasury. Hexstone’s track record with Bitcoin, Ethereum, Solana, and other assets provides potential guidance.
Digital Asset Acquisition Strategy Revealed
Earlier this month, Propanc disclosed plans to acquire undervalued digital asset treasury firms. The strategy zeroes in on DAT companies whose shares trade below market cap relative to net asset value.
The approach seeks portfolio diversification while maintaining oncology research momentum. Management believes the strategy can generate shareholder value beyond traditional pharmaceutical development.
Multiple biotech companies have embraced similar crypto strategies recently. Sonnet BioTherapeutics and Sharps Technology represent peers pursuing digital asset integration.
The movement reflects broader corporate adoption of cryptocurrency holdings. Biotech firms see crypto treasuries as mechanisms for balance sheet enhancement and investor engagement.
Shares Extend Decline After News
The market punished PPCB following the announcement. Shares plummeted 10.5% during Monday’s Nasdaq trading based on Yahoo Finance data.
The decline compounds existing losses for investors. PPCB has surrendered 46.7% of its value over the trailing 30-day period.
Crypto treasury strategies face mounting headwinds across the market. Bitcoin holding companies have lost appeal as competition intensifies in the sector.
Strategy has watched its market capitalization shrink over 43% since July. The leading corporate Bitcoin holder dropped from $122.1 billion to $69.1 billion in value.
Metaplanet suffered steeper declines after early-year success. The Tokyo-listed company has fallen approximately 55% since late June trading peaks.
Several Bitcoin treasury operators have sold digital assets recently. Firms liquidated holdings to satisfy debt obligations as financial pressures mounted.
The convertible preferred stock mechanism provides Propanc with capital access flexibility. The company can draw funds incrementally while building its digital asset position and advancing PRP toward 2026 human trials.
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