Prenetics Global Limited has officially ended its bitcoin purchasing program, signaling a strategic pivot towards its health brand, IM8. This decision was made following board approval on December 4 and marks a significant departure from the company”s earlier strategy of accumulating bitcoin as a treasury asset.
The company will retain its existing holdings of 510 bitcoin but will not invest any new capital into expanding this position. This shift comes in light of IM8″s remarkable growth, which has positioned it as one of the fastest-growing consumer health brands. Prenetics has reported that IM8 surpassed $100 million in annualized recurring revenue within just 11 months of its launch.
According to Danny Yeung, CEO and co-founder of Prenetics, the management team recognized that concentrating resources on IM8 provides the clearest path to long-term shareholder value. The health sciences firm is currently in a strong financial position, boasting over $70 million in cash and cash equivalents, no debt, and a solid balance sheet that allows for continued investment in IM8″s growth without the need for external financing.
The revised strategy will focus all funds on IM8″s expansion, which includes efforts in product development, marketing, talent acquisition, and international growth initiatives. IM8 has garnered attention through celebrity endorsements, including from David Beckham and tennis star Aryna Sabalenka, enhancing its visibility in a competitive market.
This decision to cease bitcoin purchases coincides with a broader trend in the cryptocurrency market, where many companies are reevaluating their crypto-heavy treasury strategies amid a downturn in digital asset sentiment. While Prenetics initially viewed blockchain technology as a potential complement to healthcare innovation, the current emphasis has shifted towards operational execution and revenue growth.
As of now, shares of Prenetics remained stable, trading at $16.42 each. In the larger market, Bitcoin is priced at $88,626, reflecting a minor increase of 1% over the last 24 hours, with a trading volume of $39 billion and a total market cap of approximately $1.77 trillion. Currently, nearly 19.97 million BTC are in circulation, with the price hovering close to the upper limits of its weekly range.
