Prenetics Global, a health technology firm co-founded by former footballer David Beckham, has officially abandoned its plans to accumulate Bitcoin following a recent $48 million funding round. The decision comes less than three months after the company aimed to bolster its Bitcoin treasury.
As of December 4, Prenetics ceased its Bitcoin purchases to concentrate all financial and managerial resources on its health brand, IM8. The health division has achieved notable success, reporting over $100 million in annual revenue just 11 months post-launch. CEO Danny Yeung emphasized that focusing on IM8 represents the most promising avenue for delivering sustainable long-term value to shareholders.
Initially, Prenetics had set a target to acquire one Bitcoin daily as part of a five-year strategy linked to both revenue growth and Bitcoin”s market performance. However, the company has decided to retain its existing stash of 510 BTC, valued at approximately $45 million, while halting further investments in the cryptocurrency.
This strategic pivot has coincided with a significant surge in Prenetics” stock, which has risen by 189% this year, contrasting sharply with the performance of Bitcoin and other crypto-related equities. While Bitcoin has experienced a decline of around 5.6%, Prenetics has chosen to redirect its focus entirely on maximizing the potential of its health technology offerings.
The decision to halt Bitcoin purchases marks a shift in Prenetics” approach after they began building a Bitcoin treasury back in June. This initiative followed earlier funding efforts that included investments from notable firms such as Kraken, Exodus, and American Ventures.
Despite the end of new Bitcoin acquisitions, Prenetics” focus on its health brand underscores a broader trend in which companies are reassessing their cryptocurrency strategies in light of market conditions. The company”s leadership believes that emphasizing IM8 will provide the clearest path to achieving significant shareholder value moving forward.
As Prenetics navigates this transition, it remains to be seen how these strategic changes will affect its market positioning in both the health and cryptocurrency sectors.
