Cosmos Health Warns of Survival Doubts After Crypto Treasury Crash
Cosmos Health, a Nasdaq-listed company, has warned that it may not survive the next 12 months due to significant losses in its crypto treasury. As of June 30, Cosmos's Ethereum holdings were down about 46% from their original value, resulting in $1.44 million in unrealized losses.
The company's crypto investments stem from a financing agreement with ATW Digital Asset Opportunities VII, which allowed Cosmos to issue up to $300 million of senior secured convertible notes. In August 2025, Cosmos issued an $8 million note carrying a $720,000 original-issue discount and 9% annual interest.
Under the agreement, Cosmos was required to direct 72.5% of net note proceeds into crypto, with the remainder available for working capital and general corporate purposes. The company used about $3.1 million to buy Ethereum and Bitcoin, leaving about $644,219 restricted for future purchases.