Australia-based Propanc Biopharma has announced that it has secured $100 million from a crypto-focused family office to launch a crypto treasury. This move was described by its CEO as "transformative" as its cancer therapy product prepares to enter human trials next year.
The private placement, structured through convertible preferred stock, provides Propanc with an initial $1 million investment and up to $99 million in follow-on funding over the next 12 months from Hexstone Capital. Hexstone Capital is a family office that invests in several crypto treasury companies.
The cancer-treating biotech company stated that the proceeds will be used to build a digital asset treasury and accelerate the development of its lead cancer therapy, PRP. PRP aims to enter first-in-human trials in the second half of 2026.
Propanc CEO James Nathanielsz commented that the crypto treasury would assist a "transformative phase" for the company by strengthening its balance sheet and advancing its proenzyme-based oncology platform.
“We can target not only patients suffering from metastatic cancer from solid tumors, but several chronic diseases based upon the mechanism of action of proenzyme therapy.”
While Propanc has not specified which digital assets it plans to acquire for its crypto treasury, Hexstone's clients have invested in a range of cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana (SOL), Injective (INJ), and other less prominent digital assets.
Biotech Companies Adopting Crypto Strategies
Propanc joins other biotech companies such as Sonnet BioTherapeutics and Sharps Technology that have turned to crypto to reignite investor interest.
However, Propanc’s strategic shift was not met favorably by its investors, as PPCB shares experienced a 10.5% decline on the Nasdaq on Monday, according to Yahoo Finance data.
Challenges in Crypto Treasury Strategies
Bitcoin treasury-holding companies have seen a decrease in their appeal over recent months as more entities enter the crypto space.
Even MicroStrategy, the largest corporate Bitcoin holder, has experienced a market cap slide of over 43%, decreasing from $122.1 billion in July to $69.1 billion currently.
Metaplanet, which was one of the best-performing stocks on the Tokyo Stock Exchange at the start of the year, has faced a more significant downturn, falling approximately 55% since late June. Other Bitcoin treasury companies have even been compelled to offload some of their BTC holdings to settle outstanding debts.