Know Labs Adopts Bitcoin Treasury Strategy With 1,000 BTC Acquisition

Know Labs Inc., a publicly traded medical technology firm, has announced a significant strategic shift by adopting a Bitcoin treasury strategy. This move comes after an affiliate of fintech entrepreneur and former Ripple executive Greg Kidd acquired a major stake in the company. The acquisition involves a payment of 1,000 Bitcoins, which will be deposited into Know Labs' corporate treasury, making Bitcoin a substantial part of the company's market value.

The acquisition is being managed by Goldeneye 1995 LLC, a business linked to Mr. Kidd. Under the agreement, Goldeneye will acquire a major stake in Know Labs by paying with 1,000 Bitcoins and providing additional cash to support the company’s financial needs. The funds will be used to clear debt, repurchase preferred shares, and boost working capital for future growth. Upon completion of the deal, Mr. Kidd is expected to serve as Chief Executive Officer and Chairman of the Board, while the company's founder, Ron Erickson, will become Vice Chairman of the Board.

This strategic move positions Know Labs at the forefront of a growing trend among public firms choosing to keep Bitcoin on their balance sheet. The company aims to provide its investors with a valuable way to gain from cryptocurrencies, which it sees as a “highly attractive” digital asset. It is expected that Bitcoin holdings will represent the biggest part of the company’s balance sheet, with management intending to track performance using the “multiple of net asset value” (mNAV) system. If the bitcoin price ends the day at $105,000 and the company has just under $128 million in market cap, over 82% of the company’s market cap would be in the digital currency.

Mr. Kidd expressed his optimism about Know Labs' new future, noting that the market and regulations look positive. He believes that focusing on a Bitcoin-treasury strategy is important and that joining the stock market will help Goldeneye raise revenue from its existing Bitcoin yield model. Despite this significant shift in financial strategy, the company’s foundational research in medical diagnostics will continue. Mr. Erickson will lead a team concentrating on new research in health technology that does not need invasive procedures.

Know Labs joins over 225 companies holding Bitcoin in their corporate treasury, aligning with a trend where more organizations adopt Bitcoin as a way to save their cash. This move positions Know Labs at the intersection of digital finance and health innovation, offering promising advancements in both sectors. The company's stakeholders can expect significant developments as it integrates Bitcoin into its financial processes, leveraging the potential of this digital asset to drive future growth and enhance shareholder value.