Health technology firm Prenetics has executed an unprecedented Bitcoin investment strategy by securing $20 million worth of the popular cryptocurrency, in addition to appointing experienced cryptocurrency professional Andy Cheung to its executive board. The ambitious move is a pioneering exploit in the health tech industry and lays a pathway for other companies to follow.
Bitcoin Investment and New Board Appointments
As reported on June 18, Prenetics became the first firm in the health sciences sector to execute such a bold move. Notably, the globetrotting firm purchased $20 million worth of Bitcoin, with the average price costing around $106,712 per token. Prenetics follows the lead of numerous corporations that have started a trend of accumulating Bitcoin, initiated by Michael Saylors Strategy in August 2020. Furthermore, their aggressive pace has positioned them well in this corporate Bitcoin race.
Prenetics, which is headquartered in Tysons Corner, Virginia, opted for BTC as their primary choice. They made an initial purchase of $250 million and over the years, they have accrued more than $60 billion worth of the original cryptocurrency. The significant value accretion is evidence that corporate treasuries can be highly successful under a Bitcoin standard.
Betting on Healthcare and Bitcoin: A Novel Approach
Prenetics has ventured into uncharted waters by assuming that the healthcare sector, which is typically conservative in terms of capital allocation, can adapt and thrive in a Bitcoin-centered approach. Given its strong financial situation – $117 million in reserve, no debt, strategic partnerships and a board composed of cryptocurrency veterans, – Prenetics is not simply following Strategy’s model. Rather, they are customizing it to suit an industry where digital assets are a relatively new concept.
Danny Yeung, the CEO of Prenetics, shared his vision, explaining that, “We are at the dawn of a new era where genomics, personalized medicine, and digital assets will intersect in ways that could revolutionize how we approach human health, longevity and wealth. To execute this vision at scale, we need substantial Bitcoin holdings which is why we are building one of the most significant Bitcoin treasuries in healthcare.”
Industry Veterans at the Helm
In order to materialize its Bitcoin strategy, Prenetics made a strategic move by appointing Andy Cheung, the former COO of OKEx, to its board. Cheung, a highly experienced player in the crypto exchange world, comes with a rich portfolio of managing billions in daily trading value. He has also been responsible for developing sophisticated trading infrastructure. His experience and insights are likely to help transform Prenetics’ static Bitcoin reserve into a dynamic treasury engine.
Besides Cheung, Prenetics has also brought on board Kraken executive Tracy Hoyos Lopez, who orchestrated Donald Trump’s pro-Bitcoin disposition, and Raphael Strauch, founder of TOKEN2049, a global crypto conference. Together, this group of influential industry figures blends regulatory knowledge, institutional relationships, and intense trading expertise to form a comprehensive crypto advisory team.
Future Plans
Prenetics’ Bitcoin strategy ranges beyond its initial investment. It has received board approval to commit a majority of its balance sheet to BTC and engage in yield farming and structured products. Towards the end of this year, the firm also plans on accepting Bitcoin payments across its health platforms.
