Republic Secures $100M Zero-Interest Loan to Expand ETH Staking Operations

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TLDR

Republic Technologies secured a $100 million zero-interest convertible note to expand its Ethereum validator operations.
Over 90% of the proceeds will be used to acquire ETH, starting with an initial $10 million tranche.
The financing deal has no interest payments or mark-to-market collateral requirements, a rare structure in crypto financing.
The deal includes 50% warrant coverage at market value, avoiding deep discounts seen with other crypto issuers.
Republic operates Ethereum validator infrastructure and earns staking and attestation rewards from its ETH holdings.

Vancouver-based Republic Technologies has secured a $100 million zero-coupon convertible note to expand its Ethereum (ETH) validator operations. The company, which trades under the ticker DOCT on the Canadian Stock Exchange, announced the deal on Monday. Over 90% of the proceeds will be used to acquire ETH, starting with an initial $10 million tranche.

Zero-Interest Financing for ETH Purchases

The financing deal comes from a leading institutional investor. Republic has agreed to terms with no interest payments or mark-to-market collateral requirements. This structure is uncommon in the crypto financing space, where most deals involve high-interest rates or warrant coverage.

The convertible note carries 50% warrant coverage at market value. This arrangement avoids deep discounts seen with other crypto issuers, such as BitMine Immersion and BTCS. Republic emphasized that the terms of the deal are “cash-flow neutral,” allowing the company to deploy capital without needing to service debt.

Validator-Driven Strategy and ETH Purchasing Model

Republic operates Ethereum validator infrastructure to earn staking and attestation rewards. The company uses its ETH holdings to maximize these returns. Its ETH-purchasing strategies, developed with QCP Capital, have reportedly averaged 1.75% in weekly returns.

The company did not disclose how long this performance has persisted. The figures have not been independently verified. Republic’s CEO, Daniel Liu, described Ethereum as “digital fuel” for financial systems, underscoring the importance of ETH in the company’s operations.

The deal highlights the growing interest in ETH as a balance-sheet asset. Republic continues to strengthen its position in the market by leveraging Ethereum’s staking opportunities.