Health sciences company backed by British football icon David Beckham Preneticshas halted Bitcoin purchases due to prolonged weakness in the cryptocurrency market. The company, which provided $48 million in funding at the beginning of the year, suspended its balance sheet-based Bitcoin accumulation strategy, which it started in June, at the beginning of December. The decision was taken to direct resources to the core business following the sharp market decline in October. announced. The company will continue to keep its existing Bitcoin asset as a reserve asset.
Route Changed in Prenetics’ Bitcoin Strategy
Prenetics in June cryptocurrencyHe announced a plan to buy 1 BTC every day by implementing the approach of accumulating the money on his balance sheet. The model is known for its approach that advocates keeping crypto money as a long-term asset in the company’s safe. Michael SaylorHe was close to the line pioneered by . However, the sharp market correction in October led to a rapid decline in appetite.
The company is new as of December 4 BTC announced that it had stopped its purchases. In the statement, it was stated that the persistent weakness in the cryptocurrency market made it necessary to re-evaluate capital allocation. On the other hand, it was emphasized that 510 BTC on the company’s balance sheet will be protected. The value of the assets in question is approximately 45 million dollars at current prices. While Prenetics shares have risen 189 percent since the beginning of the year, shares of Saylor-managed Strategy have fallen nearly 48 percent in the same period.
Company’s IM8 Focus
CEO and co-founder of Prenetics Danny Yeungannounced the funding on October 27, with the participation of investors including Kraken, Exodus, GPTX and American Ventures. Yeung stated that the fund will be used to expand the IM8 brand on a global scale and move towards the Bitcoin goal of $1 billion in revenue within five years.
In the past 11 months IM8As ‘s annualized recurring revenue exceeded $100 million, the board’s priorities became clear. Yeung said that IM8 has scaled rapidly, far beyond expectations, and that the strongest way to create shareholder value is to give all focus to this business line.
