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, structured to be issued in up to 14 tranches, represents a substantial capital infusion for the Canadian digital asset investment company, with the first $3.34 million tranche expected to close around October 31, 2025.

The financing terms include one-year debentures bearing 17.5% annual interest, convertible at 100% of the prior day's CSE closing price with a minimum conversion price of $0.05. Security for the debentures will be provided by all current and future Bitcoin holdings of the company. Each tranche will also include warrants equal to 25% of the tranche amount, exercisable for three years at 130% of the prior day's closing price.

CEO Chris Yeung emphasized the strategic importance of this financing framework, stating it provides Universal Digital with "a flexible, scalable capital structure to support our Bitcoin Treasury Strategy and future digital-asset initiatives." The company's focus on blockchain, cryptocurrencies, and cryptocurrency technologies positions this capital raise as crucial for participating in what it describes as "the transformation of global finance through the integration of digital asset strategies."

Joseph Gunnar & Co., LLC served as sole placement agent for the transaction. The financing structure allows Universal Digital to access capital in multiple tranches, providing operational flexibility while securing funding against its Bitcoin assets. This approach reflects the growing institutional acceptance of cryptocurrency holdings as legitimate collateral for traditional financing arrangements.

The convertible nature of the debentures offers potential upside for investors through equity conversion, while the warrant component provides additional investment opportunity. The 17.5% interest rate reflects the current market conditions for digital asset companies seeking capital and the secured nature of the debt against Bitcoin holdings. For more detailed information about the company's operations and strategy, visit https://www.universaldigital.io/.

This financing arrangement represents a significant development in the digital asset investment space, demonstrating how companies focused on blockchain and cryptocurrency technologies are accessing traditional capital markets. The structure highlights the evolving financial instruments available to digital asset companies and the increasing sophistication of funding mechanisms in this rapidly developing sector. The full press release detailing the transaction can be accessed at https://ccw.fm/nXcZk.