Nasdaq-listed company warned it may not survive 12 months after its crypto treasury crashed 46%

Cosmos Health’s crypto treasury was down about 46% at the end of June as the Nasdaq-listed company warned that recurring losses and reliance on outside financing raised substantial doubt about its ability to continue as a going concern over the next 12 months.

The company held 474.85 ETH and 15.66 BTC worth a combined $1.66 million against a $3.1 million cost basis, leaving about $1.44 million in unrealized losses. Ethereum accounted for $1.25 million, or 87%, of the shortfall.

The holdings stem from an August 2025 financing agreement with ATW Digital Asset Opportunities VII that allowed Cosmos to issue up to $300 million of senior secured convertible notes.

Cosmos initially issued an $8 million note carrying a $720,000 original-issue discount and 9% annual interest. It also recorded $736,250 of direct issuance costs and fees.

Under the August 2025 financing 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.

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