• Struggling AI biotech firm Opyl (ASX:OPL) bought ~AU$330K in Bitcoin via the DigitalX ETF, aiming to diversify treasury amid a severe cash crunch and minimal revenue.
  • The purchase was funded through a AU$2M non-dilutive loan from board member Tony G, using the BTC as collateral; the firm had just AU$64K in cash as of March.
  • Despite financial pressure, Opyls shares surged 47/% after the BTC move, though the stock remains down over 68/% from its five-year peak, with forced liquidation risks looming.

Australian biotech outfit Opyl (ASX:OPL) has turned to Bitcoin in a bid to outlast its worsening financial crunch. 

According to a report by crypto outlet Decrypt, The Melbourne-based AI health-tech company disclosed in June that it had parked approximately AU$330,000 (around US$214,500) into BTC, snapping up around two BTC through the ASX-listed DigitalX Bitcoin ETF.

Related: Pompliano-Linked ProCap Buys 3,724 BTC as It Prepares for $1 B SPAC Debut

Opyl framed the move as an strategic shift aimed at treasury diversification, shareholder alignment, and whatnot. But the numbers paint a more grim backdrop. By the end of March, Opyl had just AU$64,000 left in the bank and barely a month of liquidity. Revenue for the quarter was negligible and expenses tore through over AU$260,000.

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The purchase was made possible through a non-dilutive loan facility of up to AU$2M, provided by board member and blockchain figure Antanas Tony G Guoga. The deal comes with a 6.5 % interest rate and is collateralised against Opyls BTC holdings, essentially pledging the crypto as security for the debt.

It looks like its kind of working& Well, at least for the companys stock, as the purchase triggered a sharp reaction from the market, with Opyl shares surging more than 47 % on the day, even as the stock remains more than 68 % below its 5-year highs.

Related: Chainlink and Mastercard Team Up to Unlock Instant On-Chain Crypto Purchases

Source: Market Index

Opyl insists its pivot is measured, telling Decrypt that this is a disciplined, forward-looking capital allocation framework. But with debt climbing, a dry pipeline, and only two Bitcoin to its name, this looks more like an attempt to stay alive long enough to find one.

Whats even worrying is the fact that a liquidity crunch or sudden market moves could trigger forced liquidations, putting even more pressure on the company. But Opyl is not the first; GameStop did the same (sort of), when it announced a US$1B (AU$1.5B) deal to buy Bitcoin, only to cut it down to US$500M (AU$763M).

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