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Universal Digital Secures $50 Million Convertible Debenture Financing for Bitcoin Treasury Strategy

By Burstable Editorial Team

TL;DR

Universal Digital secured up to $50 million in convertible debentures with 17.5% interest and warrants, providing strategic capital advantage for Bitcoin treasury expansion.

Universal Digital will issue up to 14 tranches of one-year senior secured convertible debentures bearing 17.5% annual interest, secured by Bitcoin holdings.

This financing supports Universal Digital's mission to transform global finance through digital asset integration, advancing accessible cryptocurrency investment opportunities.

Universal Digital's $50 million deal includes convertible debentures with Bitcoin collateral and warrants exercisable at 130% of prior closing prices.

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Universal Digital Secures $50 Million Convertible Debenture Financing for Bitcoin Treasury Strategy

Universal Digital Inc. has entered into a significant financing arrangement with Helena Global Investment Opportunities 1 Ltd. through a private placement of up to $50 million in senior secured convertible debentures. The agreement structures the financing across up to 14 tranches, with the initial $3.34 million tranche scheduled to close around October 31, 2025. This multi-stage approach provides Universal Digital with scalable capital access while allowing for strategic deployment of funds over time.

The one-year debentures carry a 17.5% annual interest rate and feature conversion rights at 100% of the prior day's CSE closing price, subject to a minimum conversion price of $0.05. Security for the debentures encompasses all current and future Bitcoin holdings acquired by the company, creating a direct link between the financing and Universal Digital's digital asset strategy. Each tranche includes warrants equal to 25% of the tranche amount, exercisable for three years at 130% of the prior day's closing price, providing additional potential upside for investors.

Chris Yeung, CEO of Universal Digital, emphasized the strategic importance of this financing framework, stating that it provides the company with a flexible, scalable capital structure to support its Bitcoin Treasury Strategy and future digital-asset initiatives. The arrangement represents a significant commitment to Universal Digital's vision of participating in the transformation of global finance through digital asset integration. Joseph Gunnar & Co., LLC served as the sole placement agent for the transaction, bringing institutional credibility to the financing structure.

This financing agreement signals growing institutional confidence in digital asset strategies and provides Universal Digital with substantial capital to execute its investment approach. The company focuses on digital assets, businesses, and publicly listed entities involved in high-growth industries, particularly blockchain, cryptocurrencies, and cryptocurrency technologies. The convertible debenture structure allows Universal Digital to maintain operational flexibility while securing necessary funding for strategic initiatives.

The timing and structure of this financing reflect the evolving landscape of digital asset investment and the increasing sophistication of financing mechanisms available to companies in the cryptocurrency sector. For more information about Universal Digital's corporate strategy and investment approach, visit https://www.universaldigital.io/. Additional details about the financing arrangement and corporate developments can be found at https://ccw.fm/nXcZk.

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Burstable Editorial Team

Burstable Editorial Team

@burstable

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