The Crypto Company (CRCW) entered into a restructuring agreement with AJB Capital Investments LLC to convert $3,808,733 of its outstanding convertible debt into equity and cash. The deal, announced on December 3, 2025, will see CRCW issue 476,953,697 shares of common stock, receive $500,000 in cash, and grant a pre‑funded warrant, thereby removing the high‑interest liability from its balance sheet.
The conversion reduces CRCW’s debt burden by nearly $3.8 million and eliminates a potential dilution trigger that could have forced a conversion of the debt into common shares. By removing this liability, the company improves its liquidity profile and reduces the risk of a forced conversion that would have diluted existing shareholders and complicated governance.
The restructuring comes amid a period of significant financial strain. As of September 30, 2025, CRCW reported a working‑capital deficit of $8.36 million and an accumulated deficit of $56.66 million, and management has expressed substantial doubt about its ability to continue as a going concern. The debt reduction is a key step toward stabilizing the company’s capital structure and providing a cleaner runway for future financing and strategic initiatives, including its digital‑asset treasury program.
CRCW’s digital‑asset treasury, launched in August 2025, holds Bitcoin, Ethereum, XRP, and Avalanche. The company has positioned the treasury as a long‑term value‑preservation vehicle, but the high debt burden had limited its ability to invest further. With the debt removed, CRCW can allocate more capital toward expanding its treasury holdings and pursuing AI and Web3 initiatives that form the core of its future growth strategy.
CEO Ron Levy emphasized that the restructuring “substantially strengthens the company’s capital structure, reduces dilution‑related overhang, and improves flexibility for future financing and strategic transactions.” The move signals management’s confidence that the company can navigate its current liquidity challenges and focus on executing its long‑term strategy.
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