Galmed Pharmaceuticals Unveils Innovative Digital Asset Management Strategy to Increase Shareholder Value

Galmed Pharmaceuticals Unveils Digital Asset Management Strategy

On August 25, 2025, Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) announced an ambitious digital asset management strategy during a special shareholder meeting held on August 15. The company's Board of Directors approved an amendment that significantly increases the authorized share capital from 50 million to 900 million ordinary shares. This strategic move is set to empower Galmed as it aims to invest approximately $10 million — roughly 50% of its current cash reserves — into various digital asset strategies. These initiatives will include covered call options, staking, lending, and yield-generating protocols.

As part of its newly adopted treasury investment policy, Galmed seeks to diversify its balance sheet by leveraging the rapid growth and liquidity offered by blockchain-based assets. The company has established a Crypto Committee within its board to oversee and manage all crypto-related activities effectively. This committee has been tasked with the responsibility of reviewing and approving crypto investment initiatives that could potentially allocate up to 50% of the company’s cash reserves for digital asset purchases.

The details of the digital asset management strategy were made public following the appointment of Tectona Ltd. (TASE: TECT), a specialized crypto treasury management provider. Tectona will assist Galmed in implementing its digital strategy, providing expert advisory and operational services to optimize the firm's digital asset exposure while ensuring robust risk management practices are in place.

Allen Baharaff, CEO of Galmed, expressed confidence in the new initiative, stating, "Integrating digital assets into our treasury management reflects our commitment to financial innovation and capital efficiency. The strategic incorporation of blockchain technology positions Galmed to benefit from potential capital appreciation and delivers long-term value in the evolving digital economy."

In addition to financial growth, the approval to increase the authorized share capital provides Galmed with the flexibility it needs to pursue strategic opportunities and strengthen its financial foundation. Baharaff emphasized the significance of this strategic shift: "Our Crypto Committee, alongside the expertise provided by Tectona, will ensure we implement this strategy with the highest levels of security and compliance. We aim to maintain a prudent approach while adjusting to market conditions to support our mission of advancing transformative treatments."

Galmed is focused primarily on developing its lead product, Aramchol, targeting liver disease and related oncological indications. The company is also exploring other innovative product candidates aligned with its core expertise, ranging from cardiometabolic conditions to newly identified therapeutic fields. This digital asset management initiative marks a pioneering step for Galmed as it continues to position itself at the forefront of biopharmaceutical innovation.

The landscape of digital assets holds immense potential for companies willing to explore this uncharted territory. Through strategic planning, effective management, and compliance practices, Galmed aims to navigate these waters with an eye toward sustainable growth and efficient capital allocation.

As the biopharmaceutical sector continues to evolve, Galmed Pharmaceuticals is not just adapting; it is setting the pace, ensuring that its strategies align with advancements in digital finance and investment opportunities to foster long-term success.