Prenetics Shifts Focus: Bitcoin Out, Health Brand In

Prenetics, a health sciences company, has decided to stop buying bitcoin and will now focus all its attention on IM8, a health and wellness brand it co-founded with David Beckham. This change in strategy happened after the company's board gave the green light. They will keep the 510 bitcoins they already have but won't buy any more. This move is a big shift from earlier this year when many companies were adding bitcoin to their treasury reserves. However, as cryptocurrency prices dropped, these companies started to focus more on their main businesses. Prenetics said this change is because IM8 is growing so fast. It made over $100 million in just 11 months and is expected to make between $180 million and $200 million by 2026. Danny Yeung, the CEO of Prenetics, said that IM8's success has been beyond what they expected. He believes that putting all their resources into IM8 is the best way to create long-term value for their shareholders. The company has over $70 million in cash and no debt, which gives them the flexibility to grow IM8 without needing external funding.Prenetics plans to use its money for IM8's operations and expansion. This includes developing new products, marketing, hiring talent, and growing internationally. IM8 sells a nutritional supplement that aims to simplify daily health routines. The brand has been promoted by celebrities like David Beckham and tennis star Aryna Sabalenka. This decision comes at a time when the cryptocurrency market is struggling. Bitcoin has not regained its momentum after a sharp drop earlier this year. Several companies that had a lot of crypto in their treasury have seen their share prices drop. Prenetics' move is a shift back to a more traditional business focus. When Prenetics first announced its bitcoin accumulation strategy, Yeung talked about the potential overlap between healthcare innovation and blockchain technology. However, six months later, the company's focus has shifted to execution, revenue growth, and consumer demand. Prenetics believes this new strategy aligns better with shareholder priorities as IM8 continues to grow.