In a bold move within the health sciences and cryptocurrency sectors, Nasdaq-listed company Prenetics Global has successfully raised $48 million in an oversubscribed equity round aimed at boosting its bitcoin treasury strategy and expanding its supplement brand, IM8. The announcement, made on Monday, highlights the growing interest among crypto-focused investors in the firm, which has garnered backing from notable names such as Kraken, Exodus, GPTX by Jihan Wu, DL Holdings, and American Ventures.
Additionally, high-profile investors, including tennis star Aryna Sabalenka and Hong Kong business magnate Adrian Cheng, have increased their stakes in the company. Prenetics has attracted significant attention in the past, with famous football icon David Beckham among its roster of shareholders.
According to the company’s announcement, the total gross proceeds from this offering are anticipated to reach around $48 million. Furthermore, the funding could potentially yield a total of $216 million if all associated warrants are exercised.
Danny Yeung, CEO of Prenetics, stated that the newly acquired capital will facilitate the global expansion of the IM8 brand while simultaneously advancing the company’s disciplined Bitcoin treasury initiatives. Previously announced in June, the Bitcoin treasury initiative commenced its “daily 1 BTC accumulation” strategy on August 1. Currently, Prenetics holds approximately 275 BTC, valued at around $31 million as of late October. With the latest funding, the company projects its total liquidity to rise to approximately $131 million.
IM8, a supplement brand co-founded with Beckham, has already made impressive strides, achieving $100 million in recurring revenue within just 11 months of its launch. Prenetics forecasts revenues for IM8 to reach between $160 million and $200 million by 2026. Yeung expressed ambition for the company, stating, “Our long-term ambition is bold yet realistic: to reach $1 billion in annual revenue alongside $1 billion in Bitcoin holdings within the next five years.”
Despite the optimistic outlook, Prenetics’ stock experienced a notable drop of 21.96%, closing at $13.08 on Monday. However, following the equity round announcement, the stock rebounded by 4.51% in after-hours trading. Over the past five days, shares have decreased by 19.46%, though they have surged impressively by 161.6% over the last six months.
As Prenetics continues to bridge its health sciences initiatives with innovative cryptocurrency strategies, industry watchers are keenly observing how the company will leverage its recent funding to fulfill its ambitious goals in the fast-evolving market landscape.
