BioNexus Bets on Ethereum for Treasury Management
1min read Malaysia-based bionexus gene lab has made a strategic shift in its treasury management, favoring Ethereum (ETH) over Bitcoin (BTC). The company announced on March 5 that it has approved its treasury strategy, prioritizing Ethereum due to its programmability and utility.
The firm's Board of Directors identified several key factors supporting Ethereum's integration into its treasury. These include the cryptocurrency's institutional adoption, staking potential, and dominance of financial infrastructure in decentralized finance (DeFi). BioNexus aims to become the first Nasdaq-listed entity to adopt an Ethereum-exclusive treasury strategy, although the investment amount remains unspecified.
Sam Tan, CEO of BioNexus, highlighted Ethereum's high liquidity, utility, and stability compared to other digital assets. He also praised Wyoming's regulatory leadership, which fosters an environment where blockchain businesses can thrive. The company cited the Wyoming Stable Token Act, passed in March 2023, as an additional factor in its decision.
In a whitepaper titled "ETH Strategy," BioNexus argued that Ethereum contrasts with Bitcoin's primary use as a store of value by offering a staking mechanism that generates an additional yield of 3% to 5% for companies annually. This makes Ethereum an attractive option for treasury management. The document also emphasized Ethereum's key role in global finance, acting as the settlement layer for stablecoins like Tether USD (USDT) and USD Coin (USDC), and processing trillions of dollars in transactions annually.
Other key differentiators include Ethereum's role in enterprise blockchain solutions, financial settlements, and smart contract functionality. This has led to wider adoption by banks, investment firms, and publicly traded companies, signaling mainstream financial acceptance. BioNexus expects an acceleration in corporations' adoption of Ethereum exchange-traded funds (ETFs).
The whitepaper also mentioned that integrating ETH aligns BioNexus with the ongoing evolution of corporate finance, leveraging blockchain technology to enhance financial efficiency and liquidity management. It expressed optimism about Ethereum's future upgrades, citing the Pectra update, which will go live in April. Pectra will enhance wallet capabilities, validator operations, network performance, smart contract deployment, and account abstraction.
