• Prenetics halts new Bitcoin purchases after recent crypto market volatility.
• The company is prioritising the growth of its IM8 supplements brand.
• Prenetics currently holds 510 BTC and over $70 million in cash reserves.

Prenetics Global, a consumer health and supplements company backed by football icon David Beckham, has reversed its short-lived plan to build a Bitcoin treasury, opting instead to focus its capital on expanding its flagship nutrition brand, IM8.

In a statement issued on Tuesday, the Nasdaq-listed firm confirmed that it will no longer pursue additional Bitcoin purchases, signalling a shift away from digital assets amid volatile market conditions.

The company’s management stated that the redirection of resources is aimed at accelerating growth in IM8, which the company describes as one of the fastest-scaling supplement brands in the global wellness sector.

Notably, the decision comes less than three months after the company raised $48 million in fresh equity financing that was raised for cryptocurrency accumulation as a strategic objective.

Strategic pivot after crypto market volatility

When Prenetics announced its equity raise in October, Bitcoin was trading near historic highs, hovering above $110,000.

Since then, prices have dropped significantly, reflecting broader instability across digital asset markets driven by tightening financial conditions, regulatory uncertainty, and reduced institutional risk appetite.

As of this week, Bitcoin has fallen to the high-$80,000 range, underscoring the challenges companies face when managing crypto-heavy balance sheets.

Although the fundraising round was intended to support both Bitcoin accumulation and consumer brand expansion, Prenetics’ leadership now views its health and wellness business as a clearer path to long-term value creation.

The Chief Executive Officer and co-founder, Danny Yeung, said the board unanimously agreed that focusing on IM8 represents a rare growth opportunity that outweighs the potential benefits of further crypto exposure.

However, the company plans to hold on to its crypto assets despite halting new purchases.

Prenetics disclosed that it still holds approximately 510 Bitcoin alongside more than $70 million in cash and cash equivalents, providing flexibility while it reassesses capital allocation priorities.

Part of a broader corporate reassessment of crypto treasuries

Prenetics’ move mirrors a growing trend among publicly listed companies that experimented with cryptocurrency treasury strategies during bullish market cycles.

As crypto prices pull back, several firms are scaling back or abandoning aggressive accumulation plans in favour of more predictable uses of capital.

Earlier this month, Ethereum-focused treasury firm ETHZilla, backed by prominent technology investors like Peter Thiel, announced a pivot away from holding ether toward real-world asset tokenisation initiatives.

Other companies across sectors have similarly turned to share buybacks, debt reduction, or reinvestment in core operations as safer ways to support shareholder value during uncertain market conditions.

Investors in Prenetics’ October funding round included major crypto industry names such as Kraken, Exodus, and GPTX, alongside traditional investment firms.

While their participation highlighted confidence in the company’s innovation strategy, Prenetics’ latest announcement reflects a more cautious and pragmatic stance toward digital assets.

White House “Crypto Czar” David Sacks said the market is “reading a little bit too much” into President Donald Trump’s mention of Solana (SOL), Cardano (ADA), and XRP for the US Digital Asset Stockpile.

During an interview with Bloomberg Technology, Sacks said:

“The President just mentioned the top five cryptocurrencies by market cap. So I think people are just reading into this a little bit too much, he just mentioned the top five.”

He also revealed that the stockpile includes measures to stake or sell the altcoins held in it.

Altcoin audit

Sacks said the US government will audit its crypto holdings and check which altcoins are stored with the authorities. After sorting the altcoin amounts, the government will move every coin besides Bitcoin (BTC) to the Stockpile for safekeeping.

Sacks estimated that the US currently holds roughly 200,000 BTC and some Ethereum (ETH), but he is unsure about the rest.

On March 2, Trump mentioned SOL, ADA, and XRP when discussing creating a “Crypto Strategic Reserve.” It formally became the US Digital Asset Stockpile on March 6, when the President signed an executive order on the matter while simultaneously creating a Strategic Bitcoin Reserve.

Staking and rebalancing 

Sacks highlighted that Scott Bessent, Secretary of the US Treasury, will then exercise “responsible stewardship” over the altcoins held by the Stockpile. 

This includes discretion to rebalance the altcoin portfolio in the best interest of US citizens and potentially staking. 

Sacks explained:

“The Secretary of the Treasury and his team will be able to exercise portfolio management and responsible stewardship. And yes, that could include staking, it could include rebalancing, it could include sales.” 

However, he clarified that this rationale will not be applied to the Strategic Bitcoin Reserve. 

The Reserve consists of Bitcoin seized through criminal and civil forfeiture, preventing its sale, and Sacks said the US wants a long-term strategy to maximize the value of its BTC holdings.

While highlighting that the US sees Bitcoin as “scarce, valuable, and strategic to hold” as a long-term reserve asset, he said:

“The Bitcoin we want to keep long-term, so there is a difference there in objective. With the Reserve, the goal is the long-term preservation; with the Stockpile, the goal is responsible stewardship, portfolio management of assets.”

Mentioned in this article

Hong Kong legislator Johnny Ng recently stressed the need to speed up their own strategic Bitcoin reserve plan amid the recent push by America’s newly appointed crypto czar David Sacks. The legislator noted that the nation has already introduced similar measures to the US, in the race to become Asia’s crypto hub. Thus, Johnny Ng believes that adopting a BTC reserve plan shouldn’t be that hard.

Will Hong Kong Announce Its Strategic Bitcoin Reserve Soon?

Amid the growing push for digital assets worldwide, Hong Kong is working to position itself as the global hub for cryptocurrency. Legislator Johnny Ng noted that over the past two years, the country has already initiated measures that align with the recent strides made by the United States under the Donald Trump administration. Thus, Ng believes that the region is well-positioned to leap forward to building its own strategic Bitcoin reserves.

At the government level, HK has established a Third Generation Internet Development Task Force, drawing parallels to the White House’s Interagency Cryptocurrency Task Force.

On the legislative front, the Hong Kong SAR Legislative Council has created the Web3 and Virtual Asset Development Subcommittee, echoing the work being done by the U.S. Republican Senate and House cryptocurrency working group.

Moreover, both Hong Kong and the US are actively examining stablecoin legislation, with the latter reviewing the stablecoin bill through the HK Monetary Authority’s Sandbox and the Legislative Council.

Maintaining the Competitiveness With United States

Despite these positive steps, Hong Kong legislator Johnny Ng believes there is a need for greater urgency to maintain competitiveness in the global digital economy and take the early movers’ advantage.

He outlined several key actions for the country to implement in 2025. This includes accelerating research into strategic Bitcoin reserve, expanding permissions for stablecoin companies, seeking national support for stablecoin applications in the Greater Bay Area, relaxing trading types for licensed virtual asset platforms, and establishing a digital asset office to promote AI and virtual asset development. Ng also shared plans to attend the Bitcoin US Summit in May, aiming to foster deeper cooperation between Eastern and Western cryptocurrency industries.

David Sacks Pushes for Crypto Growth In the US

America’s crypto czar David Sacks held a press conference on Tuesday, wherein he revealed that the United States would be weighing a strategic Bitcoin reserve. Sacks announced the formation of a bicameral working group in Congress, tasked with developing cryptocurrency regulatory frameworks.

He emphasized that the development of cryptocurrency has become a major point of consensus in U.S. politics, particularly after the new government took office. David Sacks also pointed to the upcoming stablecoin bill, which he believes will bolster the U.S. dollar’s global leadership.

✓ Share:

Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.