iPower Enters into Strategic $30 Million Financing Facility to Strengthen Balance Sheet and Launch Digital Asset Treasury

Rhea-AI Summary

iPower (Nasdaq: IPW) announced a $30 million convertible note financing facility dated December 23, 2025 to support a new Digital Asset Treasury (DAT) and broader crypto strategy. Of the initial $9 million in committed funding, approximately $4.4 million will establish the DAT to hold Bitcoin and Ethereum, with remaining proceeds to repay an existing short-term bridge loan and provide working capital. For later tranches, about 80% of proceeds are intended to acquire digital assets. The company reported $59 million in trailing 12-month revenue as of 9/30/25 and said the financing strengthens its capital structure to pursue acquisitions, consumer-facing digital asset products, and other operational strategies.

Positive

• Convertible note facility of $30M
• Initial committed funding of $9M
• Allocated $4.4M to establish Digital Asset Treasury
• ~80% of future tranches intended for digital asset purchases
• Trailing 12-month revenue of $59M (as of 9/30/25)

Negative

• Only $9M initially committed of the $30M facility
• Subsequent tranches concentrate ~80% into digital assets, increasing balance-sheet crypto exposure

Key Figures

Convertible note facility $30 million Total size of financing facility from US-based institutional investor

Initial committed funding $9 million Initial committed portion of the financing facility

Digital Asset Treasury funding $4.4 million Portion of initial proceeds to establish Digital Asset Treasury

Subsequent tranche allocation 80% of proceeds Intended share of subsequent tranches for acquiring digital assets

Trailing 12-month revenue $59 million Trailing 12-month revenue as of 9/30/25 cited in release

Market Reality Check

$7.59 Last Close

Volume Volume 14,338 is well below 20-day average 125,540, suggesting limited pre-news positioning. low

Technical Shares at $11.80 are trading below the 200-day MA ($16.13), reflecting a prior downtrend.

Peers on Argus

Peers show mixed moves, from -0.75% (MI) and -0.58% (LGCB) to gains of 7.05% (MOGU) and 4.58% (WNW), indicating stock-specific drivers for IPW.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 09	Debt repayment	Positive	+15.0%	Repayment of JPMorgan ABL facility and clearing related UCC liens.
Nov 14	Earnings update	Neutral	-2.5%	Revenue decline but improved net loss and sharply lower operating expenses.
Nov 11	Nasdaq compliance	Positive	-1.1%	Regained compliance with Nasdaq $1.00 minimum bid requirement.
Oct 22	Funding strategy	Positive	+4.5%	Announced pursuit of alternative funding solutions for greater flexibility.
Oct 21	Reverse stock split	Negative	-8.3%	1-for-30 reverse split to support Nasdaq compliance and higher share price.

Pattern Detected

Recent news tied to capital structure (reverse split, funding actions, JPMorgan facility repayment) often produced pronounced moves, with generally aligned price reactions to perceived positive or negative developments.

Recent Company History

Over the last few months, iPower has focused on stabilizing its capital structure and exchange listing. It implemented a 1-for-30 reverse split on October 27, 2025, then highlighted efforts to pursue alternative funding solutions and later fully repaid its JPMorgan ABL facility via a bridge loan. Earnings on November 14, 2025 showed lower revenue but improved losses and reduced debt. Today’s convertible note and Digital Asset Treasury plan extend this capital and crypto-oriented strategy.

Market Pulse Summary

The stock dropped -11.4% in the session following this news. A negative reaction despite management framing the financing as balance-sheet strengthening would fit prior sensitivity to capital actions such as the 1-for-30 reverse split. The $30 million convertible structure and heavy allocation of proceeds to digital assets introduce valuation and execution risks that the market may have discounted. Historical patterns show sharp responses to funding decisions, so concerns about dilution and crypto volatility could have outweighed perceived benefits.

Key Terms

convertible note financial

"entered into a $30 million convertible note financing facility to launch its Digital Asset Treasury"

A convertible note is a type of loan that a company gets from investors, which can later be turned into company shares instead of being paid back in cash. It matters because it helps startups raise money quickly without setting a fixed value for the company right away, making it easier to grow and attract investors.

digital asset treasury financial

"will be used to establish a Digital Asset Treasury, which is expected to hold a combination"

A digital asset treasury is a collection of digital items like cryptocurrencies or tokens that a company or organization owns and manages. It’s important because it helps them store, protect, and use these digital assets for business needs, investments, or future growth, much like a cash reserve but in digital form.

digital assets technical

"broader crypto strategy designed to position the Company at the intersection of digital assets and real-world commerce"

Digital assets are electronic files or representations of value stored electronically, such as cryptocurrencies, digital tokens, or digital art. They matter to investors because they can be bought, sold, and used for transactions much like physical assets, but exist entirely in digital form, offering new opportunities for investment and financial innovation.

bitcoin technical

"Digital Asset Treasury, which is expected to hold a combination of Bitcoin and Ethereum."

Bitcoin is a decentralized digital currency and asset that exists only online, created and recorded through a public digital record maintained by many computers worldwide—think of it as a shared spreadsheet that no single person controls. Investors care because it behaves like a high-risk, high-reward store of value and speculative commodity: its supply is limited, its price can swing sharply, and owning it can change a portfolio’s risk, diversification and exposure to market sentiment.

ethereum technical

"Digital Asset Treasury, which is expected to hold a combination of Bitcoin and Ethereum."

Ethereum is a digital money system and computing platform built on a shared online ledger called a blockchain; its native token, ether (ETH), is used to pay for transactions and run automated contracts. Investors care because ether acts like a tradeable asset whose price can move sharply, and the platform’s usage, upgrades, and rules affect supply, demand and potential returns—think of it as both a new kind of commodity and the fuel for a global app store.

roic financial

"deploy assets from its newly enhanced balance sheet to generate positive ROIC."

Return on invested capital (ROIC) measures how well a company turns the money it uses to run and grow the business into profit, expressed as a percentage. Think of it like how much fruit a tree yields for each seed and watering dollar invested: higher ROIC means management is extracting more value from each dollar put into the company. Investors use it to compare how efficiently different companies deploy capital and whether returns justify the risk of holding the stock.

AI-generated analysis. Not financial advice.

RANCHO CUCAMONGA, Calif., Dec. 23, 2025 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) today announced that it has entered into a $30 million convertible note financing facility to launch its Digital Asset Treasury (“DAT”) strategy as part of a broader crypto strategy designed to position the Company at the intersection of digital assets and real-world commerce, supported by a $30 million convertible note facility from a US-based institutional investor (the “Facility”).

Of the initial $9 million in committed funding, approximately $4.4 million of proceeds will be used to establish a Digital Asset Treasury, which is expected to hold a combination of Bitcoin and Ethereum. Proceeds will also be used to repay the Company’s existing short-term bridge loan and add cash to the balance sheet for working capital, among other uses. For subsequent tranches, approximately 80% of proceeds are intended to be used to acquire digital assets.

This transaction represents iPower’s first concrete step in executing its broader crypto strategy, building on the Company’s foundation as an established operating business with $59 million in trailing 12-month revenue (as of 9/30/25).

iPower plans to use the Facility to pursue several attractive operational strategies that may include:

• Evaluating strategic acquisitions and investment opportunities that allow the company to deploy assets from its newly enhanced balance sheet to generate positive ROIC.
• Working with licensed and regulated digital asset product providers to develop and distribute compliant, consumer-facing digital asset products, leveraging its existing digital platforms, data systems, and analytics capabilities to integrate and scale these offerings.

“This financing strengthens our capital structure with long-term aligned capital, giving us the flexibility to execute a durable growth strategy,” said Lawrence Tan, CEO of iPower Inc. “Our Digital Asset Treasury is designed to be a strategic bridge between e-commerce and digital assets. By combining our platform capabilities, operating experience, and ecosystem relationships, we are focused on integrating digital assets into everyday commerce in a way that supports real economic activity and long-term value creation, rather than short-term speculation.”

As part of this strategy, the Company continues to evaluate its operating and capital structure to maximize long-term stockholder value.

About iPower Inc. 

iPower Inc. (Nasdaq: IPW) is a technology- and data-driven online retailer and a provider of value-added e-commerce services for third-party products and brands. iPower operates a nationwide fulfillment network and is expanding infrastructure across software, logistics, and manufacturing, with an aim to also pursue initiatives in digital assets and blockchain integration. For more information, please visit www.meetipower.com.

Forward-Looking Statements 

All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. iPower undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although iPower believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and iPower cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results and performance in iPower's Annual Report on Form 10-K and in its other SEC filings, including its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Media & Investor Contact

IPW.IR@meetipower.com

FAQ

What did iPower (IPW) announce on December 23, 2025?

iPower announced a $30M convertible note financing facility to launch a Digital Asset Treasury and support a broader crypto strategy.

How much of the initial iPower (IPW) funding is earmarked for the Digital Asset Treasury?

Of the initial $9M committed, about $4.4M will be used to establish the Digital Asset Treasury to hold Bitcoin and Ethereum.

What portion of future iPower (IPW) tranches will be used to buy digital assets?

Approximately 80% of proceeds from subsequent tranches are intended to be used to acquire digital assets.

Will the iPower (IPW) financing affect the company’s cash needs and liabilities?

Proceeds are planned to repay an existing short-term bridge loan and add working capital to the balance sheet.

What scale of revenue does iPower (IPW) report while launching the DAT?

iPower reported $59M in trailing 12-month revenue as of 9/30/25.

How might iPower (IPW) use the enhanced balance sheet after the financing?

The company plans to evaluate strategic acquisitions and develop consumer-facing digital asset products using its platforms and data capabilities.