BioSig Technologies (BSGM), a medical-technology company fresh off a merger with tokenization firm Streamex, said it signed definitive agreements for up to $1.1 billion in financing to fund a gold-backed treasury model and scale its tokenization platform for real-world assets (RWAs) like gold and other commodities.
The capital raise includes $100 million in senior secured convertible debentures and a $1 billion equity line of credit. The debentures accrue 4% interest and are convertible into common shares, giving holders the rights to a sizable equity position. Under the equity line of credit, the firm may issue new shares and sell up to $1 billion of common stock to investors for up 36 months.
BSGM shares plunged as much as 43% to $6.54 on Tuesday following the announcement, perhaps on concerns about potential shareholder dilution. The price stabilized later around $9, down 20% during the day. The company’s market capitalization is about $1 billion at current prices, according to Yahoo Finance data. Still, it is up roughly 600% since the two firms announced their merger on May 5.
Gold treasury strategy
A slew of companies have recently said they are pivoting to a crypto treasury strategy, raising capital by selling shares and issuing debt and investing in tokens like bitcoin
and Ethereum’s ether (ETH).
BioSig is taking a different approach. The merged entity is positioning itself as a gold treasury company while betting on the red-hot tokenization trend. Tokenized assets, or traditional instruments like stocks, funds and commodities on blockchain rails, are projected to become a multitrillion dollar market over the next years, reports by BCG, McKinsey and Standard Chartered said.
The company plans to hold physical gold through a top-tier bullion bank and denominate much of its balance sheet in the yellow metal rather than fiat currency.
Meanwhile, Streamex plans to issue tokens backed by gold and other commodities through its platform built on the Solana (SOL) blockchain.
“By combining the value of physical gold with the innovation of blockchain, we are building a company grounded in what we believe to be the world’s most trusted store of value while enabling a scalable, high-return business model through tokenization,” BioSig CEO and Streamex co-founder Henry McPhie said in a statement.
“Our mission is to unlock liquidity, transparency, and accessibility across the $142 trillion commodities market, and this milestone is just the beginning,” he added.
