Health science firm Prenetics Global, backed by football legend David Beckham, has stopped accumulating Bitcoin as of Dec 4. With an existing stash of 510 BTC, worth $45 million, and other cash equivalents, the company’s focus has pivoted to a nutrition supplement brand, IM8.
Announced on Tuesday, Prenetics’ Board has unanimously agreed that the “most promising” way to create sustainable shareholder value is to devote to a “once-in-a-generation” brand like IM8.
“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,” said CEO Danny Yeung.
Prenetics ‘1 BTC Per Day’ Strategy Stalls
Prenetics started its “1 BTC per day” treasury plan on August 1, accumulating a position of about 275 BTC, worth roughly $31 million as of October 27.
In October, the Nasdaq-listed firm, which counts David Beckham among its shareholders, raised $48 million in an oversubscribed equity round to purchase more Bitcoin.
At the time, Prenetics’ long-term goal was to reach $1 billion in Bitcoin holdings within five years.
Besides, the IM8 brand already hit $100 million in recurring revenue within its first 11 months, pivoting the company’s focus from the Bitcoin accumulation strategy. IM8 is projected to generate between $160 million and $200 million in 2026.
Prenetics will retain its existing BTC holdings as a treasury reserve asset, the announcement added.
“Prenetics has committed to not allocate any existing capital or new capital for the purpose of acquiring additional Bitcoin,” it read.
Further, as Bitcoin entered the bear market in recent months, several digital asset treasury (DAT) companies, which once touted BTC hoarding to woo investors, have changed their focus. For instance, Peter Thiel-backed Ethereum treasury ETHZilla closed its crypto treasury, selling $74.5 million worth of ETH early this month.
PRE Stock Down 3.5% in a Day
Following the announcement, Prenetics (PRE) shares fell 3.5% in a day, trading around $15.74 at press time, per Yahoo Finance.
However, the company’s shares have risen 189% this year, and bitcoin dipped about 5.6%. Meanwhile, Michael Saylor’s MSTR, the largest corporate Bitcoin accumulator, fell nearly 48% this year.
The post Footballer David Beckham-Backed Healthcare Firm Will no Longer Buy Bitcoin appeared first on Cryptonews.
Credit: Source link
