Propanc Biopharma Bets on Crypto to Fuel Cancer Research – A Risky Move?

By Patrick Walker

Amidst a challenging funding landscape for biotech firms, Propanc Biopharma (NASDAQ: PPCB) is taking a decidedly unconventional path. The small-cap company recently announced a private placement agreement with Hexstone Capital LLC for up to $100 million, not in traditional equity, but tied to the volatile world of digital assets. The move, while potentially transformative for the company, is raising eyebrows and sparking debate amongst industry observers.

Propanc plans to use the funds to accelerate the development of PRP, a novel proenzyme-based treatment targeting cancer stem cells, with a planned First-In-Human study slated for the second half of 2026. The company believes its strategy—acquiring companies with digital asset treasuries—will revolutionize its funding model and allow it to bypass traditional, increasingly scarce, capital sources.

A Desperate Measure or Bold Innovation?

The decision to embrace crypto funding comes at a critical juncture for Propanc. Recent financial data revealed an EBITDA of -$57.28 million in the last twelve months and a stock price hovering near its 52-week low. However, recent reports also indicate a significant financial turnaround with assets surging in the last fiscal year, though this growth is partially driven by prepaid service contracts.

"The traditional funding channels for small biotech are becoming increasingly constricted," explained a financial analyst who requested anonymity. “Companies like Propanc are forced to explore alternative options, and digital assets, despite the inherent risks, represent a potential lifeline.”

However, the move isn’t without its critics. Several industry experts expressed concern about the volatility of cryptocurrencies and the potential for significant dilution for existing shareholders.

“While innovative, this strategy is inherently risky,” stated another anonymous industry observer. “The value of cryptocurrencies can fluctuate wildly, and relying on them as a primary funding source leaves the company vulnerable to market downturns.”

The Details of the Deal

The agreement with Hexstone Capital LLC involves an initial $1 million investment and the issuance of 9,900 warrants, allowing Hexstone to purchase shares of Series C Preferred Stock at $10,000 per share—potentially adding another $99 million in funding. Propanc has the option to “call” back up to 500 warrants each month, but this would come at a cost of $0.01 per warrant.

The structure of the deal raises concerns about potential dilution. The conversion of preferred shares and the exercise of warrants could significantly increase the number of outstanding shares, reducing the ownership stake of existing shareholders. The specifics of these potential dilutions are detailed in Propanc’s SEC filings.

Hexstone Capital: A Complex Player

Hexstone Capital LLC is described as a family office with a strong focus on digital assets, and is actively investing in