Roundhouse Digital (LSE:ETHL) has taken a secured loan using a portion of its Ethereum (ETH) holdings as collateral, providing immediate liquidity while the company retains beneficial ownership of the pledged ETH subject to the loan’s collateral requirements.
The facility is governed by customary terms, including collateral maintenance covenants; the company warns that "in the event of significant adverse movements in the price of ETH, the Company may be required to provide additional collateral or partially repay the facility," Roundhouse added.
The deal is positioned as a balance-sheet optimisation: the company says the funding will support its core AI and technology services operations while preserving exposure to an Ethereum-denominated treasury. The RNS does not disclose the loan amount, lender identity, maturity or pricing.
Roundhouse also reiterates its material exposure to crypto and flags regulatory and market risks, noting the FCA views cryptocurrencies as high risk and that holders may not realise current valuations. The board describes the move as an "efficient use of the company's balance sheet to support operational growth," Roundhouse added.
