Prenetics, a health-sciences company co-founded by football icon David Beckham, has announced it will stop buying Bitcoin, shifting its focus to its fast-growing IM8 unit. This move comes amid a prolonged downturn in the cryptocurrency market, raising questions about the sustainability of the bitcoin treasury model popularized by firms like Michael Saylor's Strategy Inc.
The Bitcoin Accumulation Strategy That Lost Steam
Prenetics had launched a bitcoin accumulation strategy in June, aiming to purchase 1 BTC daily as part of a plan to reach $1 billion in revenue and bitcoin holdings within five years. The strategy was funded by a $48 million capital raise earlier this year, with investors including Kraken, Exodus, GPTX, and American Ventures. However, the company stated that it ceased bitcoin purchases on December 4 to concentrate resources exclusively on IM8, which has generated over $100 million in annualized recurring revenue (ARR) since its launch 11 months ago.
CEO Danny Yeung emphasized that the phenomenal success of IM8 exceeded expectations, leading the board and management to prioritize this opportunity for creating sustainable shareholder value. While Prenetics will no longer allocate capital for additional bitcoin purchases, it plans to retain its existing 510 bitcoin reserve, valued at nearly $45 million as of Tuesday afternoon ET.
Market Context and Performance
This decision reflects broader challenges in the crypto market, where enthusiasm for corporate bitcoin treasuries has waned following a steep downturn in October. In contrast, Prenetics shares have surged 189% this year, while Michael Saylor's MSTR fell nearly 48% and bitcoin dipped about 5.6%. The article also references a related piece questioning whether the bitcoin digital asset treasury model is broken, though Architect Partners argues it remains viable.
Implications for the Crypto Treasury Trend
The shift by Prenetics highlights a potential cooling in the trend of companies using bitcoin as a treasury asset, as firms reassess priorities in a volatile market. It underscores the importance of balancing innovation with financial stability in the rapidly evolving crypto space.
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