Prenetics Establishes $20 Million Bitcoin Reserve, Stock Jumps 8.7%

Prenetics, a healthcare company with headquarters in Hong Kong and the US, has made a notable entry into the cryptocurrency market by establishing a $20 million Bitcoin reserve. The company announced that it has secured approximately 187 BTC at an average price of $106,712 per Bitcoin, utilizing a Kraken custody account. This strategic move is part of Prenetics' plan to significantly increase its Bitcoin holdings and aims to become one of the largest healthcare corporate Bitcoin holders globally.

The announcement coincides with the appointment of Andy Cheung, former chief operating officer of OKEx, to Prenetics' board of directors. Additionally, Tracy Hoyos Lopez, chief of staff of strategic initiatives at Kraken and the individual who reportedly led President Trump’s shift to adopting crypto as a campaign strategy, has joined Prenetics’ “elite advisory team.” Lopez’s involvement is expected to bolster Prenetics' Bitcoin strategy, leveraging her expertise in navigating the regulatory environment and institutional adoption of cryptocurrencies.

Prenetics reported having roughly $117 million in total liquidity through pro-forma cash, Bitcoin holdings, and short-term assets. The company's stock (PRE) on the Nasdaq experienced an increase of more than 8.7% during Wednesday trading following the Bitcoin announcement. This move aligns with a broader trend among US companies adopting similar strategies, following Trump’s executive order to establish a “Strategic Bitcoin Reserve” and “Digital Asset Stockpile” in March. The US government reportedly holds around 200,000 BTC through seizures from civil and criminal cases, although it remains unclear if the Trump administration will be legally able to increase this stockpile.

An adviser to the president has suggested that the US Treasury could revalue its gold certificates to fund crypto purchases, proposing a “budget-neutral” strategy that would not use taxpayer funds to buy BTC. This development underscores the growing institutional interest in Bitcoin and the potential for further integration of digital assets into corporate and governmental financial strategies. Prenetics' move to establish a substantial Bitcoin reserve positions the company to benefit from the accelerating institutional adoption of cryptocurrencies, reflecting a forward-thinking approach to financial management and risk mitigation.