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Propanc Biopharma, located in Australia, has obtained as much as $100 million from Hexstone Capital, a family office focused on crypto, to build a digital asset treasury. The financing is in convertible preferred stock form, starting with $1 million, then with plans to invest up to $99 million over the next twelve months.
The biopharmaceutical firm said the funds would help accelerate its lead cancer therapy, PRP, which aims to begin human trials by late 2026. The move also signals Propanc’s entry into institutional crypto adoption as it builds a treasury backed by digital assets.
Propanc CEO James Nathanielsz described the initiative as a “transformative phase” that would strengthen the company’s balance sheet and expand its oncology research. He said the company aims to use its proenzyme-based therapy platform to treat patients with metastatic cancer and chronic diseases.
The company’s approach is strategic and combines biopharma innovation with neo-finance. The company will purchase undervalued digital asset treasuries (DATs) for expansion, which trade below their intrinsic value. Propanc will implement this digital strategy, expecting to generate additional shareholder value alongside its continued development of life-saving therapies.
According to Nathanielsz, this model has the potential to replace biotech's current financing through alternative revenue sources while keeping a sharp focus on research and intellectual property growth.
Propanc’s plan represents a new trend among biopharmaceutical companies exploring crypto investments to diversify funding. It joins Sonnet BioTherapeutics and Sharps Technology in using digital asset strategies to attract investor interest.
Propanc’s efforts, becoming a public company listed on Nasdaq, establish a precedent for crypto as a legitimate technology for corporate integration into the healthcare finance sector. This model signals a new era of public companies taking advantage of blockchain technology as a non-conventional asset for funding innovation.
The dual strategy creates cancer treatment breakthroughs while developing a digital asset treasury, showing how corporations develop new ecosystems around regenerative finance. Propanc’s work accelerates healthcare clinical trials and commercializes new emerging technology to strive for sustainable long-term growth.
Propanc’s daring move into cryptocurrency presents a number of challenges. Compliance with SEC regulations, crypto volatility, security of digital asset treasury, and communication with shareholders are just some of the obstacles Propanc will face.
Despite these challenges, when Propanc secured funding from Hexstone Capital, it confirmed that it felt confident in the Propanc hybrid strategy. Moving forward, Propanc’s execution, or pivot, will tell us if they become the template to provide funding for other biotech firms.
At the same time, companies that hold BTC in treasury, or established BTC treasury companies that came out of the crypto boom, have their own market headwinds and may be a cautionary tale for Propanc.
The Microsoft company, Strategy Inc., the largest corporate BTC holder in the US, recently suffered a decline in valuation from July 2021, of $122.1 billion, down to $69.10 billion. The Tokyo-listed company, Metaplanet, has been down 55% since June and reflects the market volatility for corporate crypto holdings.
These developments present a critical question: can biotech firms fulfill the crypto-based funding model for growth, where existing corporate players have struggled?
A $100 million partnership with Hexstone Capital is a critical move toward a relationship between biotech innovation and crypto-finance for Propanc Biopharma. Funding cancer therapy trials through an initial public offering through a digital asset treasury is a first that paves the way for other institutional crypto adoption for healthcare.
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