Prenetics Invests $20 Million in Bitcoin Amid 94% Stock Decline

Prenetics Global Limited, a Nasdaq-listed health sciences company, has announced its intention to establish a corporate bitcoin treasury. This decision comes despite a significant 94% decline in the company's stock value since its public debut in 2022. The company has allocated $20 million to purchase bitcoin, acquiring 187.42 BTC at a price of $106,712 per BTC through the cryptocurrency exchange Kraken. This move follows a 1-for-15 reverse stock split in October 2023, which was implemented to maintain compliance with Nasdaq listing requirements after the company's stock price deteriorated severely.

In conjunction with this bitcoin investment, Prenetics has appointed Andy Cheung, the former COO of OKX, to its board. Cheung will oversee the bitcoin treasury initiative, with the company aiming to significantly increase its holdings and become a leading healthcare corporate bitcoin holder. The company's market capitalization has dropped from $1.7 billion at the time of its May 2022 SPAC merger to $104.3 million, representing a loss of approximately 94.9% of its value when adjusted for the reverse split.

The bitcoin strategy is not limited to mere holdings; it also includes plans for yield generation and the acceptance of cryptocurrency payments across Prenetics' IM8 Health and CircleDNA platforms. CEO Danny Yeung highlighted the convergence between healthcare innovation and blockchain technology as the rationale behind this strategic shift. Despite its market struggles, Prenetics reported pro-forma liquidity exceeding $117 million. The company has raised its 2025 revenue guidance to $80-$100 million, although it has not yet recorded a profit since going public.

Cheung emphasized the importance of dynamic treasury management, utilizing institutional-grade trading techniques rather than passive bitcoin storage. Following the announcement, Prenetics' shares experienced a rise of more than 2%. This strategic move by Prenetics reflects a broader trend among companies exploring the potential of digital assets to enhance their financial strategies and operational efficiencies. The appointment of Cheung, with his extensive experience in the cryptocurrency industry, further underscores the company's commitment to this new direction.