iPower Inc. (NASDAQ: IPW) secured a $30 million convertible note financing facility on December 23 2025, a move that provides the micro‑cap company with a long‑term capital source to support its newly announced Digital Asset Treasury (DAT) strategy. The facility, issued by a U.S. institutional investor, gives the lender the option to convert the notes into IPW shares, aligning the capital raise with the company’s growth objectives.
The company earmarked $9 million of the committed funding for the DAT, with $4.4 million specifically allocated to purchase Bitcoin and Ethereum. The remaining proceeds will be used to repay a short‑term bridge loan and bolster working capital. Management has indicated that 80 % of future tranches will be directed toward digital‑asset acquisition, underscoring the firm’s commitment to building a crypto treasury.
iPower’s decision comes after a June 17 2025 announcement that it would pivot to a crypto treasury and blockchain infrastructure services model. The company’s Q4 2025 results showed a revenue decline to $11.5 million from $19.5 million in Q4 2024 and a net loss of $2.8 million versus a $0.7 million profit in the same quarter last year. For the full fiscal year, revenue fell to $66.14 million from $86.07 million, while the company reduced total debt by 41 % to $3.7 million as of June 30 2025. Over the trailing 12 months ending September 30 2025, revenue totaled $59 million.
The convertible note provides a critical liquidity cushion amid the company’s revenue contraction. By converting debt into equity, iPower can preserve cash while funding its digital‑asset strategy, which is expected to generate long‑term value. The financing also signals management’s confidence in the crypto‑treasury model, as CEO Lawrence Tan noted that the deal “strengthens our capital structure with long‑term aligned capital, giving us the flexibility to execute a durable growth strategy.” He added that the DAT is “a strategic bridge between e‑commerce and digital assets.”
Market reaction to the announcement was mixed. While the company’s shares fell 7 % on the day of the announcement, they had gained more than 20 % in the week prior and were down 52 % year‑to‑date before the recent surge. Analyst sentiment remains cautious, with a consensus “Sell” rating and a neutral AI‑analyst score of 53. The company’s free‑cash‑flow of $2.36 million and a current ratio of 1.46 suggest adequate liquidity, but the volatility of the crypto market and the risk of diverting focus from core e‑commerce operations remain concerns.
Overall, the $30 million convertible note is a material event that reshapes iPower’s capital structure and signals a strategic shift toward digital assets. The financing provides the company with the resources to pursue its crypto‑treasury ambitions while addressing short‑term debt obligations, positioning it for potential long‑term growth in a rapidly evolving market.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.