David Beckham-backed Firm Prenetics Halts Bitcoin Purchase

David Beckham-backed health-science company, Prenetics, has halted its Bitcoin accumulation strategy. The company cited the current bearish conditions in the cryptocurrency market and its renewed focus on its fast-growing core business as the reason for this decision. The Nasdaq-listed firm revealed that it stopped purchasing Bitcoin on December 4, making its shift from a strategy it unveiled earlier this year that involved building a sizable crypto treasury alongside scaling its health and wellness operations. 

Prenetics Shifts Away From Crypto

Prenetics raised $48 million in funds for its health and wellness operation; however, part of the funds was to be used for gradual Bitcoin accumulation. Chief Executive and co-founder Danny Yeung said the company planned to acquire one Bitcoin per day, with an ambitious five-year goal of reaching $1 billion in both annual revenue and Bitcoin holdings. 

The strategy follows the model popularized by several corporate crypto advocates, in which companies raise capital to buy and hold Bitcoin as a long-term store of value. While the approach gained traction during periods of rising crypto prices, enthusiasm dropped after a sharp market downturn in October.

Prenetics said in a statement that it has decided to redirect all available resources toward IM8, its consumer health and wellness brand, launched just 11 months ago. The company reported that IM8 has already generated more than $100 million in annualized recurring revenue, significantly exceeding expectations. 

Danny Yeung said, “The phenomenal success of IM8 has exceeded all expectations and scaled much faster than we originally anticipated. Our board and management team unanimously agreed that the most promising path to creating significant, sustainable shareholder value is to devote our undivided attention to this opportunity clearly visible in IM8.”

Despite halting new Bitcoin purchases, Prenetics said it will retain its existing Bitcoin holdings. The company currently holds 510 Bitcoins, valued at nearly $45 million. However, it emphasized that no existing or future capital will be allocated towards acquiring additional Bitcoin. Prenetics’ strategic change comes during unpredictable market performance. 

The company’s shares are up 189% year to date, significantly outperforming the broader crypto market. Over the same period, Bitcoin fell by 5.6%, while shares of some crypto-focused firms have dropped sharply.