VANCOUVER, Canada — Republic Technologies has secured $100 million in zero-coupon convertible notes to accelerate the expansion of its Ethereum validator and increase its ETH holdings. This marked one of the most unusually lucrative funding deals seen in the crypto infrastructure space. (Cover photo: Republic Technologies (CSE: $DOCT) CEO Daniel Liu
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The company, which trades on the Canadian Securities Exchange under the ticker DOCT, confirmed that more than 90% of its capital will go directly into purchasing ETH, starting with an initial $10 million tranche.
Unusual zero interest rate structure in virtual currency finance
This funding is provided by large institutional investors and there are no interest payments or mark-to-market collateral requirements. This is an almost unprecedented structure in cryptocurrencies, where bond trading typically requires high interest rates, aggressive dilution, or large amounts of collateral.
The notes include 50% warrant coverage priced at market value, avoiding the deep discounts seen in deals issued by companies like BitMine Immersion and BTCS. Republic described this condition as “cash flow neutral,” explaining that it allows it to deploy capital without paying down debt while accumulating more ETH for its validator operations.
Validator growth and ETH accumulation strategy
Republic operates a growing network of Ethereum validators and earns rewards from staking and verification. The company’s ETH accumulation strategy, developed in conjunction with QCP Capital, reportedly delivered an average weekly return of 1.75%, although the period of this performance was not disclosed or independently verified.
CEO Daniel Liu called Ethereum “the digital fuel for the next era of the financial system” and emphasized the company’s focus on growing its ETH balance sheet as a strategic asset rather than a speculative inventory.
The latest funding highlights a broader trend. In short, ETH is increasingly being treated as a yield-producing balance sheet asset, supported by predictable validator rewards and institutionalized staking infrastructure.
By securing highly flexible capital terms, Republic is positioned to expand without the dilution, interest charges, and collateral requirements that burden other crypto issuers. The company plans to allocate the majority of the new funds to purchasing ETH to support its long-term strategy of capturing staking revenue and strengthening its validator footprint.