Universal Digital Inc. (CSE: LFG) (FSE: 8R20) (OTCQB: LFGMF) has announced a significant financing arrangement, entering into a subscription agreement with Helena Global Investment Opportunities 1 Ltd. for a private placement of up to $50 million in senior secured convertible debentures. The agreement, structured in up to 14 tranches, with the first $3.34 million tranche expected to close on or about Oct. 31, 2025, provides the company with a scalable capital framework to advance its Bitcoin Treasury Strategy and other digital-asset initiatives.
The one-year debentures carry a 17.5% annual interest rate and are convertible at 100% of the prior day’s closing price on the Canadian Securities Exchange (CSE), subject to a minimum conversion price of $0.05. Importantly, the debentures are secured by all current and future Bitcoin holdings of the company, aligning the financing directly with its core digital asset focus. Each tranche also includes warrants equal to 25% of the tranche amount, exercisable for three years at 130% of the prior day’s closing price, offering additional upside potential to investors.
“This financing framework provides Universal Digital with a flexible, scalable capital structure to support our Bitcoin Treasury Strategy and future digital-asset initiatives,” said CEO Chris Yeung. The strategic move underscores the company’s commitment to leveraging digital assets as a core component of its treasury management. By securing a significant capital facility, Universal Digital is positioning itself to capitalize on opportunities in the evolving cryptocurrency landscape.
Joseph Gunnar & Co., LLC served as the sole placement agent for the transaction. The full press release detailing the agreement is available at https://ccw.fm/nXcZk.
Universal Digital Inc. is a Canadian investment company with a focus on digital assets, blockchain technology, and cryptocurrencies. The company aims to provide long-term capital growth through a diversified investment approach, participating in the transformation of global finance via digital asset strategies. More information is available on the company’s website at https://www.universaldigital.io/.
This financing is particularly significant as it demonstrates growing institutional interest in providing capital to companies with a Bitcoin-focused treasury strategy. The convertible debenture structure, with its high interest rate and conversion terms, reflects the perceived risk and potential reward in the digital asset space. By securing up to $50 million, Universal Digital gains substantial flexibility to acquire additional Bitcoin, fund operations, or pursue other strategic initiatives without diluting existing shareholders immediately. The warrants also provide an incentive for investors to support the company’s long-term growth.
Overall, the agreement marks a notable step for Universal Digital in its mission to integrate digital asset strategies into its corporate structure, potentially setting a precedent for similar financing arrangements in the cryptocurrency sector.
