Republic Technologies, formerly known as Beyond Medical Technologies, has secured $100 million in convertible note financing to expand its Ethereum holdings after transforming into a blockchain infrastructure company. The company stated that due to favorable financing terms, this move will allow it to increase its ETH treasury while minimizing shareholder dilution.
The company announced on Monday that the financing terms are unusual for a cryptocurrency-related company: 0% interest rate, no ongoing interest payments, and no requirement to provide additional collateral if the price of Ethereum (ETH) declines.
These features mean that Republic does not need to spend cash to repay the debt and will not default for failing to pay interest— a common issue for highly leveraged digital asset companies.
Republic indicated that most of the funds will be used to purchase ETH and expand its Ethereum validator infrastructure, which will contribute to network security and generate small but stable rewards.
Republic compared its financing to recent funding rounds of other Ethereum-focused companies. For example, BitMine Immersion (BMNR) raised $365 million but included a 200% warrant coverage, which could significantly dilute existing shareholders' equity if those warrants are exercised.
Dilution occurs when new shares are issued, reducing the ownership percentage of existing shareholders.
In contrast, Republic's financing includes a 28% warrant coverage, priced at market value, which, while still dilutive, is far lower than many comparable transactions in the digital asset industry.
Republic is one of the growing number of publicly traded companies building large Ethereum treasuries, a trend reflecting Michael Saylor's Bitcoin (BTC) accumulation strategy. According to CoinGecko, 18 publicly traded companies collectively hold approximately 5.45 million ETH, valued at about $17.3 billion.
The value of these holdings fluctuates significantly with the price of ETH. On Monday, ETH was valued at approximately $3,100, a substantial drop from its historical high of around $4,900 reached in May.
The largest treasury company, BitMine, announced on Monday that it has increased its ETH holdings and now controls 2.9% of the token supply. The company's goal is to raise its holdings to 5%.
BitMine Chairman Tom Lee stated that he does not "believe cryptocurrency prices have peaked in this cycle," adding that significant catalysts such as favorable regulation and the growth of tokenization will continue to drive the industry forward.
Related: Adam Back: Bitcoin (BTC) has no quantum risk in the next 20 to 40 years
Original article: “Republic raises $100 million with rare zero-interest deal to buy Ethereum (ETH)”
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