Bio-Path Holdings Bets an AI Crypto Treasury on a Two-Year-Old Judgment

Bio-Path Holdings, Inc. (OTC Pink: BPTH), a Pittsburgh-based oncology drug developer, filed a Current Report on Form 8-K on May 26, 2026, disclosing board approval of an AI-driven cryptocurrency trading program, the assignment of up to $10 million of a court judgment into its balance sheet, and the cancellation of what would have been the company’s second reverse stock split in roughly two years. The filing places four material decisions on the record in a single document and signs off under the name of Vikram Grover, who serves simultaneously as Bio-Path’s president, chief executive officer, chief financial officer, and director.

Each piece of the announced repositioning rests on an explicit caveat in the same filing. The company was delisted from the Nasdaq Capital Market in February 2025 after failing to meet minimum stockholders’ equity requirements, its drug pipeline has not generated product revenue, and the $57.9 million judgment underlying the treasury strategy has been outstanding for 30 months without converting to cash.

From Cancer Drugs to Crypto Wallets

Bio-Path built its clinical identity around DNAbilize, a proprietary liposomal delivery platform for antisense RNAi (ribonucleic acid interference) nanoparticle drugs administered intravenously. Its lead candidate, prexigebersen (BP1001), targets the Grb2 protein in Phase II trials for untreated acute myeloid leukemia (AML, a fast-moving blood cancer). A modified version, BP1001-A, is in Phase I/Ib study for solid tumors and metabolic disease models, and a second candidate, BP1002, targets the Bcl-2 protein across blood cancers and solid tumors.

None of that pipeline changed in the May 25 board approval. What the board layered on top was a parallel asset strategy. The resolution authorizes what the 8-K calls a “digital asset treasury 2.0” (DAT 2.0), described as using artificial intelligence to trade and accumulate multiple layer-1 and layer-2 blockchain networks, the foundational transaction rails underlying systems such as Ethereum and its scaling chains, with “growing on-chain revenues and tokenomics.” The board simultaneously authorized opening an account with Coinbase Global, Inc. or a similar well-capitalized centralized exchange to buy, sell, and hold cryptocurrencies obtained through open-market purchases, outside investment, customer payments, or strategic transactions.

A May 14 shareholder update announced the broader growth-focused repositioning, added unidentified scientific advisors, and said the company had engaged advisors to introduce it to strategic and financial investors. That same May 14 update included the cancellation of the previously approved 1-for-30 reverse stock split.

The company’s registered address in the filing is 625 Stanwix St., Suite 2407, Pittsburgh, PA, a change from the prior Bellaire, Texas offices listed in the fiscal year 2024 annual report, reflecting an operational shift that came with Grover’s arrival in 2025.

The $57.9 Million Number and Its Components

The 2021 Lawsuit and Its Resolution

The court judgment cited in Bio-Path’s recently filed 8-K disclosures on SEC EDGAR traces to a federal dispute that predates Grover’s role at the company. In September 2021, Grover, acting through his advisory firm IX Advisors, sued Net Savings Link, Inc. (OTC: NSAV), then an operator of a cryptocurrency exchange and token-creation platform, along with four co-defendants: the Wilton Group entities registered in the Isle of Man and England, China Food and Beverage Co. (OTC: CHIF), and James A. Tilton. The complaint alleged breach of a 2015 non-circumvention and non-disclosure agreement under which Grover had agreed to raise capital for NSAV in exchange for equity and compensation.

The defendants did not mount a substantive defense. The U.S. District Court for the Northern District of Illinois, Civil Action No. 1:21-CV-05054, entered a default judgment on December 5, 2023. A subsequent memorandum opinion by Judge Mary M. Rowland on August 26, 2024, granted summary judgment against Tilton on several remaining counts, with the consolidated final court order dated September 5, 2024.

What the Board Approved on May 25

The board resolution assigns to Bio-Path up to $10 million of the principal judgment. Three separate components define the full scope of the award:

• $57,903,750 – the principal judgment against the defendants, the figure referenced throughout the 8-K
• $6,781,877.57 – pre-judgment interest owed in addition to the principal
• Several million dollars – estimated post-judgment interest, not yet precisely quantified in the filing

Consideration for the $10 million assignment will be paid to the CEO in company notes, preferred stock, or common shares at prices and structures to be determined when and as the judgment is monetized. No timeline appears in the filing. The practical implication is that if Bio-Path eventually receives value from NSAV-related assets, it would compensate the assignment with its own securities, with dilutive impact on existing shareholders determined only at that future point. The court order is attached as Exhibit 10.2.

Himalaya Technologies Heard This Story First

The December 2023 judgment entered the public record alongside a different company’s crypto pivot announcement. Himalaya Technologies, Inc. (OTC: HMLA), another publicly traded holding company for which the CEO has served as chief executive and control shareholder since 2021, filed its own 8-K on December 26, 2023, announcing plans to pursue custodianship of NSAV and CHIF to extract their crypto businesses and fintech assets and fold them into Himalaya’s portfolio.

The default judgment, which I was notified of last week, is the culmination of a business dispute from several years ago that drove me to file legal action in federal court in 2021.

That was the statement from Grover accompanying Himalaya’s December 2023 press release. The Himalaya filing noted no merger agreements or binding investment agreements had been signed and that a memorandum of understanding was the extent of any formal commitment at the time.

Thirty months later, no public filing from Himalaya or NSAV has confirmed that custodianship was obtained or that NSAV’s crypto assets transferred to any affiliated entity. The same judgment, with the same custodianship requirement, now appears in Bio-Path’s balance-sheet strategy as its most significant announced financial catalyst.

Bio-Path’s Path From Nasdaq to OTC Pink

Bio-Path’s financial condition going into the repositioning follows a documented decline across the prior two years. On February 22, 2024, the company executed a 1-for-20 reverse stock split while still listed on the Nasdaq Capital Market, in an attempt to maintain the minimum bid price. That move did not stabilize the stock. By September 2024, Nasdaq notified the company it had failed to satisfy Listing Rule 5550(b), which requires a minimum stockholders’ equity of $2.5 million. The company appealed, lost, and on February 19, 2025, trading on Nasdaq was suspended. The stock began trading on the OTC Markets system that same day.

The table below maps each element of the May 26 announcement to the condition governing whether it produces tangible value for shareholders:

Bio-Path reported a net loss of $4.6 million for Q2 fiscal 2025, or $0.55 per diluted share, an improvement from $1.16 per share in the same quarter of the prior year, reflecting reduced operating costs rather than any new revenue. Its BPTH profile on OTC Markets shows a 52-week share-price high of $0.23 as of mid-May 2026.

The Canceled Split and Its Double Meaning

A 1-for-30 reverse stock split is a severe consolidation ratio. Most companies seeking exchange compliance or improved per-share pricing use ratios between 1-for-5 and 1-for-20. The fact that Bio-Path’s board approved a 30-to-1 split at some point before May 14, and then reversed the decision within the same communication that announced the crypto repositioning, signals a sharp change in strategic calculus.

Context makes the reversal more pointed. The company already executed a 1-for-20 reverse split in February 2024 while still on Nasdaq. Canceling what would have been a second split in roughly two years carries at least four plausible readings:

• A crypto treasury program that attracts retail interest could lift the share price without the optics of a second consolidation, making the split redundant
• A judgment-for-shares assignment pays the CEO in company securities; a smaller share count after a 30-to-1 split would make each issued share more dilutive at the same dollar value
• Reverse splits on OTC Markets frequently trigger selling among retail holders who associate repeated consolidations with financial distress, a risk when the company is simultaneously trying to attract new strategic investors
• The incoming leadership, arriving in 2025 with a different portfolio philosophy, may have seen the split as incompatible with the growth narrative being constructed

The 8-K gives no stated reason for the cancellation. What it confirms is that the stock retains its current share structure going into the crypto repositioning.

The Condition the Company Cannot Waive

Bio-Path’s filing addresses the custodianship requirement in a single sentence: “There can be no assurances Mr. Grover will successfully obtain custodianship over NSAV et al. in order to effect a transaction or series of transactions with us.”

Custodianship of a defunct publicly traded entity requires a court petition in the target company’s state of incorporation, a judicial hearing, and an order from a state court judge. NSAV is a Colorado-incorporated company. The Wilton Group co-defendants are registered in the Isle of Man and England, adding cross-border enforcement layers to any collection effort beyond what the Illinois federal court can directly compel. No public custodianship petition has been announced, though proceedings under the Illinois case docket may include sealed or subsequent filings not visible from the public record.

The DAT 2.0 program does not wait on the judgment. Bio-Path’s board approved both tracks in parallel, and the company can begin buying cryptocurrency through a Coinbase account funded from general operating capital whenever the account is opened. The judgment route, if successful, would add a non-cash asset injection into Bio-Path’s treasury. If custodianship remains unresolved, as it has since December 2023, the crypto program operates from whatever capital a company that lost $4.6 million in a single quarter can allocate to blockchain trading accounts.

If custodianship is obtained and the judgment monetized in the coming months, Bio-Path gains legal claim value that has sat on paper since 2023 and a non-dilutive catalyst for its treasury strategy. If it remains unresolved, the same judgment continues its tour through Grover’s portfolio of filings as a number that has never converted into cash for any of the companies that have listed it as a strategic asset.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or an endorsement of any company. Investing in OTC-traded and micro-cap securities carries significant risk, including potential loss of principal. Figures cited are accurate as of publication based on publicly available SEC filings and court records. Readers should consult a qualified financial professional before making any investment decisions.