Republic raises $100M for ETH purchases under unusual zero-interest deal

Republic Technologies, formerly known as Beyond Medical Technologies before transitioning into blockchain infrastructure, has secured a $100 million convertible note facility to expand its Ether holdings — a move the company said will enable it to grow its $ETH treasury with minimal shareholder dilution due to favorable financing terms.

The financing comes with unusual terms for a crypto-related company: a 0% interest rate, no ongoing interest payments and no requirement to post additional collateral if the price of Ether ($ETH) falls, the company announced Monday.

These features mean Republic does not have to spend cash servicing the debt and cannot default for failing to make interest payments — a common issue for highly leveraged digital-asset companies.

Republic said that most of the funds will be allocated toward purchasing $ETH and expanding its Ethereum validator infrastructure, which generates small but steady rewards for contributing to the network’s security.

Source: Republic Technologies

Republic compared its deal with recent raises by other Ether-focused companies. BitMine Immersion (BMNR), for example, raised $365 million but attached 200% warrant coverage, which could significantly dilute existing shareholders if those warrants are exercised.

Dilution occurs when new shares are issued, reducing the ownership percentage of existing shareholders.

By contrast, Republic’s financing includes 50% warrant coverage priced at the market rate, which is still dilutive, but far lower than many comparable deals in the digital-asset industry.

Relate: ARK Invest resumes crypto buying spree, adds BitMine and Bullish shares

$ETH treasury accumulation continues amid price volatility

Republic is part of a growing group of publicly traded companies building large Ether treasuries, a trend that mirrors Michael Saylor’s Bitcoin (BTC) accumulation strategy. According to data from CoinGecko, 18 public companies collectively hold about 5.45 million $ETH, valued at roughly $17.3 billion.

The value of these holdings has swung widely alongside $ETH’s price volatility. On Monday, $ETH was valued at around $3,100, down sharply from its all-time high of around $ 4,900 reached in May.

BitMine, the largest treasury company, announced on Monday that it has increased its $ETH holdings and now controls 2.9% of the token’s supply. The company aims to raise its holdings to 5%.

$ETH treasury rankings before BitMine’s latest acquisition. Source: CoinGecko

BitMine’s chairman, Tom Lee, said he does not “believe crypto prices have peaked for this cycle,” adding that major catalysts such as favorable regulation and the growth of tokenization will continue to drive the industry forward.

Related: Ether exchange reserves fall to 3-year low as ETFs, corporate treasuries soak up supply