BioSig Applied sciences (BSGM), a medical-technology firm contemporary off a merger with tokenization agency Streamex, mentioned it signed definitive agreements for as much as $1.1 billion in financing to fund a gold-backed treasury mannequin and scale its tokenization platform for real-world property (RWAs) like gold and different commodities.
The capital elevate contains $100 million in senior secured convertible debentures and a $1 billion fairness line of credit score. The debentures accrue 4% curiosity and are convertible into frequent shares, giving holders the rights to a large fairness place. Underneath the fairness line of credit score, the agency might subject new shares and promote as much as $1 billion of frequent inventory to traders for up 36 months.
BSGM shares plunged as a lot as 43% to $6.54 on Tuesday following the announcement, maybe on considerations about potential shareholder dilution. The value stabilized later round $9, down 20% through the day. The corporate’s market capitalization is about $1 billion at present costs, based on Yahoo Finance knowledge. Nonetheless, it’s up roughly 600% because the two corporations introduced their merger on Could 5.
Gold treasury technique
A slew of corporations have not too long ago mentioned they’re pivoting to a crypto treasury technique, elevating capital by promoting shares and issuing debt and investing in tokens like bitcoin
and Ethereum’s ether (ETH).
BioSig is taking a unique method. The merged entity is positioning itself as a gold treasury firm whereas betting on the red-hot tokenization development. Tokenized property, or conventional devices like shares, funds and commodities on blockchain rails, are projected to grow to be a multitrillion greenback market over the following years, experiences by BCG, McKinsey and Customary Chartered mentioned.
The corporate plans to carry bodily gold via a top-tier bullion financial institution and denominate a lot of its stability sheet within the yellow steel fairly than fiat foreign money.
In the meantime, Streamex plans to subject tokens backed by gold and different commodities via its platform constructed on the Solana (SOL) blockchain.
“By combining the worth of bodily gold with the innovation of blockchain, we’re constructing an organization grounded in what we imagine to be the world’s most trusted retailer of worth whereas enabling a scalable, high-return enterprise mannequin via tokenization,” BioSig CEO and Streamex co-founder Henry McPhie mentioned in a press release.
“Our mission is to unlock liquidity, transparency, and accessibility throughout the $142 trillion commodities market, and this milestone is only the start,” he added.
Learn extra: Tokenized Gold Surges Above $2B Market Cap as Tariff Fears Spark Protected Haven Commerce
