Quantum Biopharma bolsters Bitcoin treasury

Quantum Biopharma has purchased an additional $1 million worth of Bitcoin and other cryptocurrencies, the Canadian biotechnology company said.

The buys take Quantum’s total cryptocurrency holdings to approximately $4.5 million,accordingto a May 19 press release. The biotech company plans to stake a portion of its crypto to generate revenue.

Quantum expects that holding a treasury of BitcoinBTC$105,622BitcoinChange (24h)0.20%Market Cap$2.09TVolume (24h)$42.83BView Moreand other crypto assets will “provide a return on investment for shareholders and […] provide some hedge against the Canadian dollar,” itBTC$105,622BitcoinChange (24h)0.20%Market Cap$2.09TVolume (24h)$42.83BView More.

Shares of Quantum’s stock, QNTM, rose by approximately 25% following the announcement, according todatafrom Google Finance.

Related:Basel Medical shares down 15% on $1B Bitcoin buying plans

Quantum is one of several healthcare companies accumulating Bitcoin as corporate crypto treasuries become increasingly popular.

In March, NASDAQ-listed biopharmaceutical company Atai Life Sciences tippedplans to buy $5 million worth of Bitcoin.

In a March 20 Xpost, Atai’s founder, Christian Angermayer, said “Bitcoin should be a part of ANY corporate treasury – especially, in fact, in the biotech sector.”

Angermayer added in a blogpostthat Bitcoin can help the biotech hedge against inflation and stay solvent during the long periods before drug approvals.

On May 16, Singapore-based healthcare company Basel Medical Group announcedplans to buy $1 billion worth of Bitcoin.

It said a Bitcoin treasury will support its plans to expand in Asia through acquisitions by giving Basel “one of the strongest balance sheets among Asia-focused healthcare providers.”

Unlike Quantum, however, Basel’s shares dropped significantly on the day of the announcement.

Collectively, corporate treasuries hold more than $83 billion in Bitcoin as of May 19,accordingto data from BitcoinTreasuries.NET.

Publicly traded companies are now the largest institutional Bitcoin holders after exchange-traded funds (ETFs), the data shows.

Bitcoin can “potentially be a valuable hedge against growing fiscal deficits, currency debasement, and geopolitical risks” for companies, asset manager Fidelity Digital Assetssaidin a 2024 report.

Magazine:Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

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