The initial purchase of more than 187 BTC was part of a larger strategy to “substantially increase its Bitcoin holdings,” according to Prenetics.
The individual who helped “orange-pill” US President Donald Trump has become part of the advisory team for a healthcare company establishing a Bitcoin reserve strategy.
In a Wednesday notice, Hong Kong and US-headquartered health services company Prenetics said it would follow the example set by Strategy and invest $20 million into Bitcoin (BTC). According to the company, it secured roughly 187 BTC at an average price of $106,712 per Bitcoin using a Kraken custody account.
“Prenetics plans to substantially increase its Bitcoin holdings and aims to become one of the largest healthcare corporate Bitcoin holders globally,” the announcement said.
The announcement came amid Prenetics saying former OKEx chief operating officer Andy Cheung would join its board of directors. Tracy Hoyos Lopez, chief of staff of strategic initiatives at Kraken and the person who reportedly spearheaded Trump’s shift to adopting crypto as a campaign strategy, was also listed as a member of Prenetics’ “elite advisory team.”
“After successfully guiding President Trump’s Bitcoin advocacy and seeing the regulatory environment strengthen globally, Prenetics’ comprehensive Bitcoin strategy, now bolstered by their strengthened financial position, positions the company to benefit immensely from accelerating institutional adoption,” said Lopez.
Related: Swedish health firm raises $10M to buy Bitcoin, stock jumps 45%
Prenetics reported roughly $117 million in total liquidity through pro-forma cash, Bitcoin holdings, and short-term assets. Shares of the company’s stock (PRE) on the Nasdaq rose more than 8.7% during Wednesday trading amid the BTC announcement.
US government plan for a national BTC reserve?
Many US companies have adopted strategies similar to those of Strategy and Prenetics, following Trump’s executive order to establish a “Strategic Bitcoin Reserve” and “Digital Asset Stockpile” in March. The White House reported at the time that the US government held roughly 200,000 BTC through seizures from civil and criminal cases.
It’s unclear if the Trump administration will be legally able to increase the existing BTC stockpile, but an adviser to the president has suggested having the US Treasury revalue its gold certificates to fund crypto purchases. To date, the proposed plans would not use taxpayer funds to buy BTC, but instead rely on a “budget-neutral” strategy.
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