Basel Medical Group shares dropped around 15% after the healthcare company announced plans to buy $ 1 billion in Bitcoin for its corporate treasury.
On May 16, the basel based in Singapore Says This is “in advanced discussions with a consortium of institutional investors and high-net individuals (…) to get a US $ 1 billion BTC through an innovative share-swap repair.
The company said the benefits of its planned purchase include the creation of “one of the strongest sheets of balance to Asian -focused health care” and provides “incompatible financial flexibility for integration and acquisition.”
It also said Bitcoin (Btc) Treasury will help the basel “(e) stablish” a darling asset base in volatility in the weather market. “
But the shareholders of the company are not sold. Basel’s stock, BMGL, dropped around 15% in the announcement, according to Data From Google Finance.
Related: Try to be Bitcoin Treasury Company
Fuel acquisitions
In April, basel announced That got a peer healthcare provider, Bethesda Medical, for an unspecified total.
The deal was marked by the “beginning of the strategy of expanding the Basel Medical Group in Singapore and the broader Southeast Asian healthcare market.”
Basel’s management team expects Bitcoin accumulation to help with these plans. “Our expanded balance sheet will allow us to quickly move to strategic opportunities as we build a major health care platform throughout the high growth markets in Asia,” Darren Chhoa, CEO of Basel, said in a statement.
Corporate Bitcoin Treasury
This is not the first time the company shareholders have punished it for announcing plans to develop a Bitcoin treasury.
Gamestop poured nearly $ 3 billion in market capitalization on a trading day in March as Investors questioned videogame retailers plans In stockpile bitcoin.
“There are question marks with a gamestop model. If bitcoin would be pivot, where would all be left behind?” Bret Kenwell, US investment analyst in ethoro, said Reuters in March.
Corporate treasures collectively hold nearly $ 80 billion worth of Bitcoin until May 16 According to in data from bitcointreasuries.net.
Bitcoin can “potentially be an important fence against growing fiscal deficiencies, currency collapse, and geopolitical risks” for corporations, asset fidelity digital assets Says In a 2024 report.
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