- Profusa secures $100M credit line to boost Bitcoin treasury reserves.
- Company keeps $5M cash buffer, uses excess funds buying Bitcoin.
- Ascent gets 900,000 Profusa shares through new cashless warrant deal.
Profusa is making headlines by announcing a big move into Bitcoin. The company has secured a $100 million equity line of credit (ELOC) with Ascent Partners. With this new plan, the financial resources will be used by Profusa to purchase Bitcoin as the primary asset in its treasury reserves.
Profusa’s ELOC Deal Uses Stock Sales to Buy More Bitcoin
First, the firm will maintain a cash buffer of five million. This implies that it will not invest the amount of money beyond this point to purchase Bitcoin. Under the deal, all of the net proceeds will be used to purchase Bitcoin in case the cash balance of Profusa is greater than 5 million dollars at the time of each share sale.
Within this agreement, Profusa will have the right to sell its portions of Common Stock to Ascent. Each share price will be set at 97% of the lowest five-day average. The maximum value for each sale is $5 million or the average daily trading amount from the last five days. This structure helps Profusa manage its share sales while using the extra funds to buy Bitcoin carefully. Therefore, this approach helps Profusa manage share sales carefully while raising funds for Bitcoin purchases.
If Profusa’s cash balance drops below \$5 million, the company will first use new funds to bring it back up to that level. After that, any leftover money will go toward buying Bitcoin. This way, Profusa can build its Bitcoin reserves but still keep enough cash on hand.
However, the ELOC can proceed only in the case of the signing of the final agreements by both parties and their fulfillment of standard closing conditions. In addition, the issue of shares of Profusa that can be issued under this plan will also be limited. This will remain at 19.9% of the total share numbers until the shareholders have more.
Profusa Issues Warrants Giving Ascent 900,000 Shares at $0.01
Besides, Profusa will issue Ascent cashless warrants. These warrants will enable Ascent to acquire 900,000 shares of Common Stock of Profusa at the price of only 0.01 dollars per share. This is an additional value to Ascent under the deal.
Profusa’s CEO, Ben Hwang, Ph.D., explained the reason for this new plan. He explained that the company is interested in preserving the value of its shareholders and aligning its mission in digital health. Furthermore, he considers that the possession of Bitcoin will enable Profusa to overcome the increasing fears of monetary debasement.
Hwang also added that this is a move that is aligned with what the other major companies have done. These companies have enhanced returns to their shareholders by listing Bitcoin in their balance sheets. Profusa has the same aim, as it manages its money smartly and remains focused on AI-based health solutions.
The new plan is a significant step for Profusa. It demonstrates the faith of the company in Bitcoin as a digital store of value in the future. In case it succeeds, other digital health firms can be motivated to use the same strategy.
However, some dangers exist. The Bitcoin plan of Profusa is based on the future price of Bitcoin, rules that may change, and the capacity of the company to maintain a balance between risk and growth. Meanwhile, the step sends a powerful signal of the increasing role of Bitcoin in corporate finance.
Ultimately, the new Bitcoin treasury strategy by Profusa might make the company expand and safeguard its value in the digital world. Most people will follow keenly to see whether this radical move will be worth it and whether it will be an
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