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Prenetics, a health sciences company operating in Hong Kong and the United States, has backed off from proceeding with its bitcoin acquisition. The abrupt move comes amid BTC’s sluggish price movement since October.
In June, Prenetics joined a slew of publicly traded companies that established Bitcoin treasuries. At the time, many of these firms spent millions of dollars to acquire BTC, following a path that Strategy (formerly MicroStrategy) forged. Some, like Strategy, even secured loans to bolster their BTC holdings. However, Prenetics incurred no debt while purchasing BTC.
When joining the bandwagon, Prenetics’ CEO, Danny Yeung, stated that adopting a BTC-buying practice marks a new era of convergence between the healthcare sector and blockchain technology.
The firm bought 187.42 BTC in its first acquisition. Fast-forward to December 4th, the firm seized acquiring the apex crypto after boosting its stash to 510 BTC, worth over $45 million. According to BitcoinTreasuries data, Prenetics ranks 70th among public firms holding bitcoin.
Following board approval, Prenetics intends to retain its BTC holdings.
Notably, this would be the first time a public firm building a crypto treasury halts its strategy. Despite BTC’s price decline this quarter, companies like Strategy and Metaplanet have continued to accumulate the leading cryptocurrency. At the time of writing, BTC was trading at $88,300.
The firm disclosed in a press release that its revenue will be funneled into IM8, a nutritional supplement that replaces complex capsules. Prenetics’ CEO highlighted that the healthcare product will benefit shareholders in the long term; hence, the need to diverge from BTC to IM8.
“We are incredibly excited about the future of IM8 and are confident that by focusing our efforts, we can propel its growth to even greater heights. Operating from a position of strength, we are making disciplined strategic decisions that reflect our experience as operators and our commitment to maximizing long-term shareholder value,” he said.
Prenetics added that it would use any additional revenue to fund “product innovation, brand building, talent acquisition, working capital, and international expansion.”
Notably, Prenetics’ stock, PRE, rose 0.37% over the past 24 hours. This brings its trading price to $16.34 at the time of writing. This suggested that shareholders are in support of the new direction.
The post Prenetics Stops Building a Bitcoin Treasury, Focuses on Health Brand appeared first on CoinTab News.
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