- 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, Opyl’s 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
Bitcoin as a Last Resort
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.
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 Opyl’s BTC holdings, essentially pledging the crypto as security for the debt.
It looks like it’s kind of working… Well, at least for the company’s 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
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.
What’s 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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