Profusa Biotech Commits $100M to Bitcoin for Strategic Treasury Management

Profusa, an American biotechnology firm specializing in digital technologies for continuous human biochemistry monitoring, has announced a pivotal strategic shift in its corporate treasury management. The company plans to commit up to $100 million towards Bitcoin acquisition, a move designed to bolster long-term value preservation and enhance financial resilience in an evolving economic landscape.

• Profusa will allocate up to $100 million for Bitcoin acquisitions.
• The investment is facilitated by an Equity Line of Credit (ELOC) agreement with Ascent Partners Fund LLC.
• Shares will be sold to Ascent at 97% of the lowest five-day volume-weighted average price (VWAP).
• Proceeds will primarily fund Bitcoin purchases, but cash reserves below $5 million will be replenished first.
• Profusa’s CEO cites protecting shareholder value and adapting to a digital future as key drivers.
• Ascent Partners Fund LLC will receive options for 900,000 Profusa shares at a nominal price.

Strategic Treasury Reorientation

Ben Hwan, Ph.D., Chairman and CEO of Profusa, articulated the strategic rationale underpinning this significant decision. Dr. Hwan emphasized that holding Bitcoin on the company’s balance sheet represents a “strategic step to protect shareholder value and adapt to a digital future” amidst a backdrop of escalating currency devaluation. This financial realignment, according to Dr. Hwan, seamlessly integrates financial efficiency with Profusa’s overarching mission: the development of a cutting-edge digital health platform focused on chronic disease management and overall human well-being. This proactive measure positions Profusa to navigate macroeconomic uncertainties while remaining committed to its core technological advancements.

Financing the Bitcoin Acquisition

This substantial investment into digital assets is being facilitated through an Equity Line of Credit (ELOC) agreement established with Ascent Partners Fund LLC. Under this innovative arrangement, Profusa will incrementally issue common shares to Ascent. The pricing mechanism for these share issuances is set at 97% of the lowest volume-weighted average price (VWAP) recorded over the preceding five trading days. The capital generated from these share sales is primarily earmarked for the acquisition of Bitcoin.

A crucial operational safeguard built into the agreement dictates that if Profusa’s cash balance dips below a threshold of $5 million, funds will first be prioritized to replenish this critical reserve. Any remaining capital beyond this replenishment will then be directed towards Bitcoin purchases, ensuring liquidity while pursuing the digital asset strategy. As part of the ELOC agreement, Ascent Partners Fund LLC will also be granted options to purchase 900,000 shares of Profusa at a nominal exercise price of $0.01 per share. Furthermore, the total volume of shares issued under this agreement is capped at 19.9% of the company’s outstanding shares, unless specific additional shareholder approval is secured.

Broader Corporate Adoption and Outlook

Profusa anticipates initiating its first Bitcoin purchases within the upcoming week. Comprehensive disclosures regarding these digital asset holdings will subsequently be provided on a quarterly basis through the company’s routine financial reporting. This strategic pivot adds Profusa to the expanding roster of publicly traded corporations that are integrating Bitcoin into their corporate treasury strategies. This trend was notably pioneered by firms such as MicroStrategy, which continues to maintain its position as a dominant institutional holder with approximately 607,770 BTC on its balance sheet. Profusa’s move underscores a growing institutional recognition of Bitcoin’s potential as a hedge against inflation and a store of value in the contemporary financial landscape.