On December 31, 2025, the price of Bitcoin on the Gate exchange reached $88,385.19, marking a surge of over 433% compared to the end of 2022, three years prior. However, even as the Bitcoin market appeared bullish, Hong Kong-based health tech company Prenetics, backed by soccer star David Beckham, announced it would pause its Bitcoin acquisition strategy.
In October 2025, the company had raised $48 million and planned to purchase one Bitcoin per day, aiming to reach $1 billion in revenue and Bitcoin holdings within five years. This shift comes amid a prolonged downturn in the cryptocurrency market, sparking widespread discussion within the industry about how companies should balance crypto asset investments against their core business development.
01 Key Event
Prenetics’ shift in its Bitcoin strategy stands as a significant case in corporate crypto asset allocation. Headquartered in Hong Kong, this health tech company counts British soccer legend David Beckham as an early equity partner and brand ambassador, and has previously demonstrated strong confidence in crypto investments.
In October 2025, Prenetics completed an oversubscribed equity financing round, raising $48 million, with the potential to reach $216 million through the exercise of warrants. At the time, the company made it clear that these funds would be used to expand its health brand IM8 and advance its Bitcoin treasury strategy.
IM8, Prenetics’ health and wellness brand, achieved $100 million in annual recurring revenue within just 11 months, showcasing robust business growth potential.
02 Strategic Shift
Just two months after completing its fundraising, Prenetics announced it would pause its Bitcoin purchasing strategy. This decision coincided with continued weakness in the cryptocurrency market. According to the company’s latest statements, resources will now be focused on developing the IM8 business.
Currently, Prenetics will retain its existing reserve of 510 Bitcoins. Based on the Gate exchange price of $88,385.19 on December 31, 2025, these holdings are valued at approximately $45 million.
| Strategic Element | At October 2025 Fundraising | As of End of December 2025 |
|---|---|---|
| Bitcoin Acquisition Plan | Accumulate 1 Bitcoin daily, aiming for $1 billion in Bitcoin assets over 5 years | Paused acquisition, retaining 510 Bitcoin in reserves |
| Funding Source | Raised $48 million, with potential proceeds up to $216 million | Funding redirected to IM8 business expansion |
| Investor Profile | Crypto investors including Kraken, Exodus, GPTX, and American Ventures | No change |
| Business Focus | Balancing IM8 expansion with Bitcoin accumulation strategy | Focusing resources on IM8 business development |
| Market Environment | Bitcoin price relatively stable, companies actively considering crypto asset allocation | Prolonged crypto market downturn |
Prenetics’ decision reflects a risk-averse approach amid crypto market volatility. CEO Danny Yeung had previously stated the original goal was to achieve $1 billion in revenue and Bitcoin assets within five years.
03 Underlying Reasons
Multiple factors contributed to Prenetics’ decision to abandon its Bitcoin acquisition strategy. This move is not merely a reaction to short-term market swings, but a reassessment of the company’s asset allocation strategy.
The ongoing slump in the cryptocurrency market was a direct trigger. Although Bitcoin hit new highs several times in 2025, the market as a whole showed structural divergence. For publicly listed companies like Prenetics, shareholders tend to prioritize short-term financial performance over the potential long-term gains from crypto asset allocation.
From a business development perspective, Prenetics’ health brand IM8 achieved $100 million in annual recurring revenue within 11 months, demonstrating strong growth momentum. With limited resources, it is more rational to channel funds into high-growth core businesses rather than volatile crypto assets.
Corporate Bitcoin strategies also require specialized risk management capabilities. Prenetics’ initial enthusiasm for a Bitcoin treasury strategy was supported by crypto investors such as Kraken and Exodus. However, to effectively manage crypto assets, companies need to establish dedicated risk management frameworks and operational processes.
04 Market Insights
Prenetics’ strategic adjustment offers important lessons for corporate crypto asset allocation. This case illustrates that companies must formulate crypto strategies based on their own business characteristics, market environment, and risk tolerance.
Corporate asset allocation is becoming increasingly diversified. Prenetics’ experience highlights the trade-off between investing in crypto assets and traditional business growth. Successful corporate strategy requires balancing long-term vision with short-term market realities, especially in highly volatile asset classes like cryptocurrency.
A long-term holding strategy remains mainstream. Although Prenetics has paused new purchases, it has chosen to retain its existing reserve of 510 Bitcoins. This suggests companies are more inclined to view Bitcoin as a long-term reserve asset rather than a short-term trading vehicle.
The importance of professional trading platforms is underscored. For companies, selecting the right trading platform for crypto asset allocation is crucial. Platforms like Gate not only provide trading services, but also offer industry insights and market analysis to help companies make more informed decisions.
05 New Investment Directions
For companies and individual investors seeking crypto asset allocation, Prenetics’ experience offers new perspectives. Changing market conditions demand a more cautious and professional investment approach.
Corporate asset allocation needs to be more diversified. As Dr. Han, founder of Gate, noted in his 2025 year-end open letter: "2025 marks a turning point in the maturity of Web3." Companies should build diversified crypto portfolios—including Bitcoin—rather than concentrating investments in a single asset.
A long-term perspective is still key to crypto investing. While short-term market swings are inevitable, Bitcoin remains one of the best-performing asset classes over the long run. From $16,547.85 at the end of 2022 to $88,385.19 at the end of 2025, Bitcoin has gained over 433% in three years.
The value of professional platforms is especially evident in volatile markets. Corporate investors should choose trading platforms like Gate, which offer robust security, transparent proof of reserves, and professional services. In 2025, Gate’s reserves reached $11.676 billion, with a reserve ratio of 124%, covering nearly 500 user assets.
Outlook
After Prenetics announced the suspension of its Bitcoin purchasing plan, its share price dropped nearly 15% in pre-market trading. As of December 31, 2025, the company’s 510 Bitcoins were valued at about $45 million—almost equivalent to the $48 million raised in financing, making these "digital gold" reserves nearly equal to its cash holdings.
Amid market volatility, Bitcoin’s price on Gate rebounded from a mid-December low of $85,462.51 to $88,385.19 by year-end. This trend stands in subtle contrast to the company’s strategic shift, signaling that crypto asset allocation is evolving from a corporate PR hotspot into a long-term financial strategy requiring professional management.
