Footballer David Beckham-Backed Healthcare Company Halts Bitcoin Purchases

Health science firm Prenetics Global, which is supported by football legend David Beckham, announced on December 4 that it has ceased its efforts to acquire Bitcoin. Instead, the company, which currently holds 510 BTC valued at approximately $45 million, is shifting its focus towards a nutrition supplement brand named IM8.

Key Takeaways

Prenetics Global, supported by David Beckham, has stopped buying Bitcoin, holding 510 BTC worth $45 million.
The company is shifting its focus to its nutrition supplement brand, IM8, which already achieved $100 million in revenue.
Prenetics' Bitcoin purchasing strategy, initiated in August, has been halted amid market changes.
Following the announcement, Prenetics' stock fell by 3.5%, although shares have still increased significantly this year.

Prenetics Bitcoin

In a Tuesday announcement, Prenetics' Board unanimously decided that prioritizing a "once-in-a-generation" brand like IM8 would be the "most promising" way to generate sustainable shareholder value.

“By operating from a position of strength, we are making strategic decisions that reflect our experience and our commitment to maximizing long-term shareholder value,” stated CEO Danny Yeung.

Prenetics’ '1 BTC Per Day' Acquisition Plan Pauses

Prenetics launched its “1 BTC per day” treasury initiative on August 1, leading to the accumulation of about 275 BTC worth nearly $31 million by October 27.

In October, the Nasdaq-listed company, with Beckham among its shareholders, successfully raised $48 million through an oversubscribed equity round intended to purchase additional Bitcoin.

Initially, the company's long-term ambition was to amass $1 billion in Bitcoin holdings within five years.

Furthermore, the IM8 brand has already generated $100 million in recurring revenue in its first 11 months, prompting a shift from the Bitcoin acquisition strategy. Projections indicate that IM8 could bring in between $160 million and $200 million by 2026.

The company confirmed that it would maintain its current Bitcoin holdings as a treasury reserve asset but stated, “Prenetics has committed to not allocate any existing capital or new capital for the purpose of acquiring additional Bitcoin.”

As Bitcoin has recently entered a bear market, various digital asset treasury companies, which previously focused on Bitcoin accumulation to attract investors, have adjusted their strategies. For example, Ethereum treasury ETHZilla, backed by Peter Thiel, closed its crypto treasury by selling $74.5 million worth of ETH earlier this month.

PRE Stock Declines 3.5% in Response

Following this announcement, shares of Prenetics (PRE) fell by 3.5% in a single day, trading around $15.74 at the time of this report, according to Yahoo Finance.

Despite this decline, Prenetics' shares have surged by 189% this year, while Bitcoin itself has decreased by about 5.6%. Conversely, shares of Michael Saylor's MSTR, the largest corporate Bitcoin holder, have plummeted nearly 48% this year.