Health Sciences company Prenetics Global Ltd. (NASDAQ:PRE) has officially announced the discontinuation of its Bitcoin treasury strategy. The decision was made on December 30, as the firm shifts its focus towards its supplement brand IM8, which has experienced remarkable growth, achieving $100 million in annualized recurring revenue within just 11 months.
In a statement, Prenetics CEO Danny Yeung expressed immense satisfaction with the unexpected success of IM8, stating, “The phenomenal success of IM8 has exceeded all expectations and scaled much faster than our original expectations.” He emphasized that the board and management team unanimously agreed that prioritizing IM8 represents the most viable strategy for delivering sustainable shareholder value.
Prenetics initially introduced its Bitcoin treasury strategy in June, with plans to invest $20 million in Bitcoin and bring former OKX operating chief Andy Cheung onto its board. At that time, Yeung described the intersection of genomics, personalized medicine, and digital assets as a revolutionary opportunity in health and wealth management. The company also indicated intentions to accept cryptocurrency payments through its consumer-facing platform, IM8 Health.
In a show of confidence, Prenetics raised $48 million from investors, including notable participants such as cryptocurrency exchange Kraken and wallet provider Exodus, to bolster its Bitcoin strategy. The company had aspirations of reaching $1 billion in annualized revenue and similar figures in Bitcoin holdings. As of December 30, Prenetics reported holding $70 million in cash and approximately 510 BTC valued near $46 million.
The pivot away from Bitcoin aligns with a broader trend in the cryptocurrency market characterized by declining prices. Bitcoin, for instance, saw a significant drop of up to 36% from its record high of $126,000 to a low of $80,600 by October. Many companies holding Bitcoin treasuries faced valuation declines, trading below the actual value of their digital assets. However, Prenetics has managed to maintain a stronger position, likely attributed to the ongoing success of IM8. The company’s stock was recently trading around $16, having increased over 180% in the past year.
In light of these developments, Prenetics remains focused on leveraging the growth potential of IM8, shedding its Bitcoin strategy amid market challenges, and aiming to create lasting value for its shareholders.
