Republic Technologies, formerly Beyond Medical Technologies, has secured a $100 million convertible note facility to expand its Ether (ETH $3,132) holdings. The company highlighted that the financing terms 0% interest, no ongoing interest payments, and no collateral obligations in the event of ETH price drops will allow it to grow its ETH treasury while limiting shareholder dilution.
Most of the proceeds will go toward purchasing ETH and expanding Ethereum validator infrastructure, generating consistent network rewards. Republic emphasized that this approach mitigates default risk common in highly leveraged crypto firms.
Source: Republic Technologies
Minimal dilution compared to industry peers
Republic’s convertible note includes 50% warrant coverage priced at market rates, which is dilutive but far less aggressive than some comparable industry deals. For instance, BitMine Immersion (BMNR) raised $365 million with 200% warrant coverage, which could significantly reduce existing shareholders’ ownership if exercised.
Dilution occurs when new shares are issued, lowering the percentage of ownership held by existing shareholders. Republic’s financing approach positions it to expand ETH exposure without significantly impacting equity holders.
Public companies amassing ETH treasuries
Republic is part of a broader movement among publicly traded companies building substantial ETH reserves, mirroring Michael Saylor’s Bitcoin accumulation strategy. According to CoinGecko data, 18 public companies collectively hold approximately 5.45 million ETH, valued at around $17.3 billion.
These holdings fluctuate with ETH price volatility. On Monday, ETH was trading around $3,100, down from its all-time high near $4,900 in May. BitMine, the largest ETH treasury holder, now controls 2.9% of the total token supply and aims to reach 5%, according to chairman Tom Lee, who noted that regulatory clarity and tokenization growth could continue to drive the market forward.