Onfolio Holdings announced a $300 million convertible note facility with a U.S. institutional investor, closing its first tranche of $6 million on November 18, 2025. The funding provides immediate working capital and a flexible capital structure that can be drawn on as the company pursues growth initiatives.
The proceeds will be deployed in three key areas: (1) direct investment in Bitcoin, Ethereum, and Solana; (2) staking of those assets through established digital‑finance platforms to generate yield; and (3) support of Onfolio’s operating businesses and strategic expansion, including potential acquisitions and portfolio optimization.
Onfolio’s Q3 2025 results highlighted a mixed financial picture. Revenue rose 36.3% year‑over‑year to $2.74 million but fell 12.9% sequentially from $3.07 million in Q2. Net loss widened to $0.6 million, an 82.1% increase from the prior year’s $0.3 million loss, while cash on hand dropped to $0.40 million against $4.55 million in liabilities. The company disclosed “substantial doubt” about its ability to continue as a going concern, underscoring the urgency of the new financing.
CEO Dom Wells described the facility as “transformative,” noting that it “dramatically strengthens our balance sheet and significantly improves our working capital.” He added that the capital will enable Onfolio to build a hybrid treasury model that blends operating cash flow with digital‑asset upside, while also fueling organic growth and the launch of its AI‑powered marketing subsidiary, Pace Generative.
Following the announcement, market participants reacted positively, with analysts citing the liquidity boost and the company’s clear strategy for digital‑asset investment as key drivers. The financing addresses the liquidity concerns that led to a 16.6% decline in Onfolio’s share price the day before, when the Q3 earnings report highlighted widening losses and cash constraints.
The convertible note facility positions Onfolio to accelerate its digital‑asset treasury strategy, potentially generating higher returns than traditional operating cash flow. However, the company must manage the risks of digital‑asset volatility and continue to improve operating profitability to sustain long‑term growth. The financing also signals management’s confidence in the company’s ability to navigate current headwinds while pursuing strategic acquisitions and expanding its online‑business portfolio.
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