iPower Bets Treasury on Crypto in High-Stakes Strategic Pivot

RANCHO CUCAMONGA, CA – December 29, 2025 – Online retailer iPower Inc. (Nasdaq: IPW) announced today that it has made a significant entrance into the world of digital assets, purchasing approximately $2.2 million in Bitcoin and Ethereum. The move, part of a newly established Digital Asset Treasury (DAT) strategy, represents a dramatic strategic pivot for the e-commerce services provider and has raised eyebrows due to the investment's substantial size relative to the company's available liquid assets.

In a statement, iPower confirmed the transactions occurred on Friday, December 26, through a subsidiary account with the institutional-grade custodian BitGo. The company acquired 15.1 Bitcoin (BTC) at an average price of $87,686.33 and 301.1 Ethereum (ETH) at an average price of $2,934.67. While the investment amount is modest compared to corporate crypto pioneers like MicroStrategy, it represents a highly aggressive allocation for a company of iPower's scale.

“We view this initial deployment as an important milestone in executing our broader crypto strategy,” said Lawrence Tan, CEO of iPower, in the official press release. He described the purchases as a “disciplined and measured approach” and indicated the company intends to evaluate additional purchases over time, subject to market conditions.

A Bold Treasury Shift

The significance of iPower's investment becomes clear when examining its financial position. The $2.2 million deployment into volatile cryptocurrencies is a striking figure when placed against the company's reported cash and cash equivalents, which stood at just $2.0 million at the end of its last fiscal year on June 30, 2025, and $2.2 million in the prior quarter. This suggests the company allocated the entirety of its last reported cash reserves to the digital asset purchases, a move that starkly contrasts with the more conservative treasury management typical of publicly traded companies.

With a market capitalization hovering around $8 million in late December, the investment represents more than a quarter of the company's total market value. This aggressive strategy comes at a time when iPower is navigating financial headwinds. The company reported a 23% decrease in revenue to $66.14 million for fiscal year 2025, accompanied by a growing net loss of $4.97 million. Financial health indicators, such as a low Altman Z-score of 1.34, have also pointed to potential financial distress, making the decision to embrace such a high-risk asset class all the more consequential.

Riding the Bull Market Wave

iPower's entry into the crypto market was timed during a period of significant bullish momentum. With Bitcoin trading near all-time highs above $87,000, the company's purchase was made amidst strong positive market sentiment that has been building throughout 2024 and 2025. This trend was largely fueled by the growing adoption of spot Bitcoin ETFs and increasing institutional interest in digital assets as a potential hedge against inflation and a source of non-correlated returns.

By adding Bitcoin and Ethereum to its balance sheet, iPower joins a growing but still select group of public corporations diversifying their treasuries. While this signals an alignment with a forward-looking trend, it also exposes the company and its shareholders to the notorious price volatility of the cryptocurrency market. The move could be seen as either a savvy entry into an appreciating asset class or a high-risk purchase near a market top, the outcome of which will directly impact the company's financial stability.

From E-Commerce to a Blockchain Future?

Beyond the immediate financial implications, iPower's leadership has signaled that this is more than just a treasury play. The press release explicitly mentions that the company aims to “pursue initiatives in digital assets and blockchain integration,” pointing toward a deeper, long-term vision. For an e-commerce and logistics company, the potential applications of blockchain technology are numerous and could represent a fundamental evolution of its business model.

Speculative use cases could include leveraging blockchain for enhanced supply chain transparency, allowing for the immutable tracking of products through its nationwide fulfillment network. The company could also explore integrating cryptocurrency payment options on its platform, potentially reducing transaction costs and settlement times. Other possibilities include developing token-based customer loyalty programs or using non-fungible tokens (NFTs) to create unique digital experiences or product authentications. CEO Lawrence Tan’s characterization of the purchase as a “milestone” in a “broader crypto strategy” suggests that holding the assets may be the first step toward gaining internal expertise before attempting a deeper operational integration.

Risk, Regulation, and Investor Scrutiny

By embracing digital assets, iPower has also taken on a host of new risks. The primary concern is price volatility. Under current U.S. accounting standards, cryptocurrencies are treated as indefinite-lived intangible assets. This means iPower must record an impairment loss if the value of its holdings falls below its cost basis, even if the assets are not sold. These losses would directly impact its reported earnings. However, gains in value cannot be recorded on the income statement until the assets are sold, creating an asymmetric risk profile in its financial reporting.

To mitigate security risks, the company has wisely chosen to partner with BitGo, a regulated and well-regarded digital asset custodian known for its robust security protocols and insurance coverage. This move demonstrates an awareness of the operational dangers of managing digital assets and provides a degree of protection against theft or loss.

Nonetheless, this strategic pivot by a small-cap company facing financial challenges will undoubtedly be under intense scrutiny from investors and regulators. The success or failure of this $2.2 million bet could significantly influence iPower's trajectory, determining whether it is remembered as a forward-thinking innovator or a cautionary tale of corporate risk-taking in the digital age.