Cosmos Health Raises $300 Million to Reserve Ethereum

Event Overview

Cosmos Health Inc. (NASDAQ: COSM), a Chicago-based global healthcare company founded in 2009 in Nevada, has expanded from pharmaceuticals and nutraceuticals into digital technology initiatives. With distribution networks in Europe, Asia, and North America, and operations in Greece and the UK, the company owns prominent brands such as Sky Premium Life and C-Sept, and entered the telehealth space with the acquisition of ZipDoctor, Inc.

The event began with an announcement from Cosmos Health on August 6, 2020, confirming that the company had entered into a securities purchase agreement with a US institutional investor to issue senior secured convertible promissory notes worth up to $300 million. At least 72.5% of the total proceeds from each issuance will reportedly be used to build an ETH-based digital treasury, while the remainder will be used for working capital and development initiatives. BitGo Trust Company, Inc. and Curvature Securities, LLC facilitated the transaction. will provide infrastructure for ETH staking and custody.

The digital transformation strategy that Cosmos Health has undertaken, including exploring blockchain applications for supply chain traceability, health incentive programs, and global customer engagement, is indicative of this move. The transaction occurred as ETH prices increased by 45% over the past thirty days, reaching $3,679 on August 6, 2020, demonstrating growing institutional interest. Following the announcement, COSM shares rose by 30% in the trading session on August 7, 2025, with trading volume increasing 20-fold, demonstrating a positive market response.

Strategy for choosing Ethereum as a reserve center

Cosmos Health has become one of the first publicly traded healthcare companies in the United States by raising $300 million to build an ETH treasury. This allows the company to increase shareholder value by increasing the value of ETH per share. It also allows for exploring staking and crypto revenue streams, supporting its digital transformation strategy. This move increases demand for ETH and strengthens its position as an institutional reserve asset, especially as companies like SharpLink and Bitmine have accumulated hundreds of thousands of ETH. Cosmos Health’s participation could encourage other healthcare companies to join the same trend.

The $300 million funding for Cosmos Health not only supports ETH accumulation but also supports manufacturing, research, and product development initiatives in the United States, which are being developed with a new partnership in New Jersey. BitGo ETH staking could generate around $8-10 million in annual revenue, supplement cash flow, and support digital transformation, including health incentive programs and blockchain applications for supply chain traceability.

In terms of the market, the deal increases ETH demand, reduces circulating supply, and puts upward pressure on prices, especially as companies like SharpLink (438,200 ETH) and BitMine (833,100 ETH) are leading the institutional trend. This has the crypto community excited about the potential for market expansion, strengthening Ethereum's competitive position as a reserve asset against Bitcoin.

Conclude

Not only does this open up opportunities for shareholder value and financial diversification for Cosmos Health, it also accelerates the institutionalization of ETH, despite the risks of volatility and regulation. In the context of the newly launched “Project Crypto”, this is a sign that cryptocurrencies are reshaping corporate finance strategies, opening a new era with both opportunities and challenges.

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