Biotech Meets Blockchain: Propanc’s $100 Million Crypto Treasury Fuels Cancer Therapy Innovation

Introduction

Australia-based Propanc Biopharma announced it secured up to $100 million in funding from Hexstone Capital to build a crypto treasury and accelerate development of its lead cancer therapy PRP, which targets metastatic solid tumors. The private placement, structured as convertible preferred stock, includes an initial $1 million with up to $99 million available over the next 12 months. CEO James Nathanielsz called the move “transformative,” aligning biotech innovation in proenzyme-based oncology with digital asset treasury management to bolster the balance sheet ahead of first-in-human trials planned for H2 2026. 

Propanc joins a growing list of biotech firms—such as Sonnet BioTherapeutics and Sharps Technology—pivoting to crypto to reignite investor interest. While Hexstone’s clients have exposure to Bitcoin (BTC), Ether (ETH), Solana (SOL), Injective (INJ), and other cryptocurrencies, Propanc has not yet disclosed specific asset allocations for its treasury. Despite the strategic rationale, public market reaction was negative: Propanc’s Nasdaq-traded PPCB shares fell 10.5% on Monday and are down 46.7% over the past month, according to Yahoo Finance. 

The broader environment for corporate crypto treasuries has softened as more companies enter the space and near-term returns compress. Even the largest corporate Bitcoin holder has seen its market cap decline over recent months, while firms like Metaplanet have also retraced significantly; some treasury holders reportedly sold BTC to service debt. Propanc’s bet underscores a high-risk, high-upside approach—leveraging a crypto treasury to fund clinical development and diversify capital strategy—amid a volatile digital asset market.

Background

Australia-based Propanc Biopharma has taken an ambitious step that merges cutting-edge oncology with forward-looking finance. On Nov. 10, the company revealed a private-placement agreement worth up to $100 million with Hexstone Capital, a family office known for its cryptocurrency holdings. The deal—structured as convertible preferred stock—will fund a crypto treasury and accelerate Propanc’s lead cancer therapy, PRP, toward first-in-human trials projected for the second half of 2026.

Why a Crypto Treasury?

A corporate crypto treasury is the practice of holding digital assets such as Bitcoin (BTC), Ether (ETH), or Solana (SOL) on the balance sheet. Companies adopt this strategy to diversify reserves, hedge against fiat-currency inflation, and—in some cases—signal technological savvy. According to the analytics site BitcoinTreasuries.net, more than 40 publicly traded firms now list BTC in their financial statements, with MicroStrategy and Tesla among the most prominent examples.

Propanc’s plan echoes this trend but is relatively rare in the biotech sector, where treasury management typically favors conservative cash equivalents. In a statement to investors, CEO James Nathanielsz called the move “transformative,” adding that larger reserves will “strengthen our balance sheet and advance our proenzyme-based oncology platform.” Hexstone’s existing portfolios include BTC, ETH, SOL, and Injective (INJ), though neither party has disclosed which coins Propanc will eventually purchase.

Funding Mechanics: Convertible Preferred Stock Explained

Rather than issuing straight equity, Propanc opted for convertible preferred shares. This class of security provides Hexstone:

•  A higher claim on assets than common stock,

•  Fixed dividends (if declared), and

• The right to convert into ordinary shares under preset conditions.

From Propanc’s perspective, that structure limits immediate share dilution while still granting access to capital. The agreement begins with a $1 million drawdown, then allows Propanc to tap up to an additional $99 million over 12 months. Convertible instruments are common in biotech, where clinical milestones—and associated funding needs—can be unpredictable.

For context, data from S&P Global Market Intelligence show that life-sciences firms raised more than $4 billion via convertible securities in 2023, underscoring their importance in R&D-heavy industries.

The Science: PRP and Proenzyme Therapy

Propanc’s flagship candidate, PRP, is a formulation of proenzymes—precursors to digestive enzymes—that selectively target cancerous cells while sparing healthy tissue. Preclinical studies published in the peer-reviewed journal Scientific Reports suggest proenzymes can reduce tumor aggressiveness and metastasis in pancreatic and ovarian model. If these results translate to humans, the therapy could address one of oncology’s toughest challenges: late-stage solid tumors with limited treatment options.

Propanc aims to file an Investigational New Drug (IND) application with the U.S. Food and Drug Administration in early 2026, clearing the way for Phase I trials. The $100 million facility therefore supports both scientific milestones and a digital-asset reserve anticipated to appreciate over time.

Market Reaction and Broader Context

Investor response has been mixed. Propanc’s Nasdaq-listed shares (ticker: PPCB) fell 10.5 percent on the day of the announcement and are down roughly 46 percent over the past month, according to Yahoo Finance. Traders may be wary after watching other crypto-treasury adopters such as Sonnet BioTherapeutics and Sharps Technology see short-term volatility.

Meanwhile, the corporate crypto-treasury narrative has cooled since Bitcoin’s March 2024 halving rally. Even MicroStrategy, the largest public BTC holder, has seen its market capitalization slide more than 35 percent from its July peak, based on SEC filings. Research by CoinDesk notes that some firms have sold BTC to cover operational expenses as prices fluctuated.

Risks and Rewards

Holding digital assets introduces price volatility, regulatory uncertainty, and accounting complexity. Under current U.S. GAAP rules, crypto is treated as an intangible asset, meaning firms must write down value when prices fall but cannot mark gains until a sale occurs. Propanc will need robust treasury-management protocols—including multi-signature wallets, cold-storage security, and regular audits—to satisfy shareholders and regulators.

Yet the upside is equally clear:

• Balance-sheet leverage if digital assets appreciate,

• Increased visibility among crypto-savvy investors, and

• A potential hedge against macroeconomic shocks.

Hexstone managing partner David Rix (quoted in Blockworks coverage of the deal) said, “We believe a crypto treasury gives high-growth companies a flexible, modern capital base that fiat alone cannot provide.” While that optimism remains untested in biotech, it aligns with a broader conversation about blockchain’s role in healthcare funding—from tokenized royalties to decentralized data sharing.

Looking Ahead

If PRP enters the clinic on schedule, Propanc will be among the first biopharma firms to bankroll a Phase I oncology program via a hybrid cash-plus-crypto capital stack. Success could inspire peers to explore similar structures, especially as traditional venture funding tightens. Conversely, a downturn in digital-asset markets could pressure Propanc’s runway, underscoring the need for prudent diversification.

Either way, the company’s strategy represents a notable convergence of biotech innovation and blockchain finance, illustrating how specialized sectors are rethinking treasury management in a digital age.