Nasdaq-listed biotech company Windtree Therapeutics (WINT) announced it has entered into a Common Stock Purchase Agreement with Build and Build Corp to sign a $500 million equity line of credit (ELOC). The company also signed an agreement for an additional $20 million stock purchase deal, with total funding up to $520 million.
According to Windtree, 99% of the funds will be used to set up a BNB treasury strategy. However, the equity will not be used until the company has received approval to increase its common stock shares. This move highlights the growing trend of crypto treasury and how listed companies are capitalizing on it to boost their balance sheets.
ELOC Agreement Reflects Windtree’s Diversification Plan
Windtree CEO Jed Latkin expressed his excitement at the BNB acquisition plan, saying it’s essential to the company’s strategy. “We are excited to incorporate these new facilities to enable our future BNB acquisitions as part of our BNB treasury strategy. Pending stockholder approval, the opportunity to secure additional funds for the purchase of more BNB is essential to our strategy.
Director of Build and Build Corp, Patrick Horsman, said Windtree’s strategy to add BNB to its treasury symbolizes its approach to value creation. He said the ELOC ensures it provides the flexibility and scale needed to execute this visionary initiative.
BNB Treasury Will Enhance Institutional Access and Liquidity
Setting up a BNB treasury provides several benefits to both companies, such as increased institutional access to BNB and liquidity. Given that Windtree has a crypto reserve will stir up more investment opportunities, creating a secure and regulated entry point. Besides, purchasing BNB in large volumes will ensure the asset’s stability.
In addition, setting up a BNB treasury reinforces decentralization and resilience. Corporate entities no longer view cryptocurrencies as a volatile asset. Rather, they see them as potential assets that safeguard against inflation, a volatile economy, and a depreciating fiat currency.
In setting up a BNB treasury, Windtree Therapeutics joins the growing list of companies with a crypto-backed strategy, such as 10X Capital, MicroStrategy, Metaplanet, and GameSquare. While the majority of companies are using Bitcoin as a core asset in their reserves, Windtree and 10X Capital are the only ones with a BNB-backed treasury. It signifies that BNB has matured alongside Bitcoin and Ethereum into a mainstream cryptocurrency.
More Companies to Join?
Companies are setting up a crypto treasury as a diversification strategy to enhance cash flow in an inflationary environment. Our experts do not doubt that more corporate entities will join the train. Besides, having a treasury appeals to mainstream investors who also see it as an opportunity to protect their fortune.
BNB recently broke through the $800 mark to reach an all-time high earlier this week. The third-largest digital asset by market cap currently trades at $774, down 0.59% but up 6.6% in one week. Experts point to $1k as the next target if BNB holds above $800, citing strong fundamentals, such as rising DEX volume and inflows.
