Prenetics Global, the supplement company backed by David Beckham, announced it has abandoned its Bitcoin accumulation strategy following volatility in the cryptocurrency markets.
The Nasdaq-listed company raised $48 million in October to build a cryptocurrency treasury and grow its main consumer brand, IM8. However, less than three months later, company management decided to halt Bitcoin purchases.
Prenetics Global announced that it will no longer pursue plans to purchase Bitcoin and will instead focus its resources entirely on the growth of the IM8 brand. Describing IM8 as “the fastest-growing nutritional supplement brand in industry history,” the company emphasized that its board of directors decided that focusing on this area is the best way to create long-term and sustainable shareholder value.
Danny Yeung, CEO and co-founder of the company, stated that the management and board of directors unanimously approved this strategic change, adding that IM8 offers a “once-in-a-generation” growth opportunity. It was also revealed that Prenetics currently has over $70 million in cash and cash equivalents, and holds 510 Bitcoin on its balance sheet.
It was noted that when the capital increase was announced in October, the Bitcoin price was around $114,000, but the recent pullback has brought the price down to around $88,000. Experts say this weakness in the crypto markets has led many companies to reconsider their digital asset accumulation strategies. Indeed, in recent weeks, some companies have halted crypto purchases, while others have turned to alternative strategies such as share buyback programs or the tokenization of real-world assets.
*This is not investment advice.
