Beckham-backed Prenetics urgently "hits the brakes," signaling the first major retreat in corporate Bitcoin reserve trends

Nasdaq-listed company Prenetics Global, supported by football legend David Beckham, officially announced on December 31st that it will cease its aggressive “Daily 1 Bitcoin” treasury reserve plan. The company had raised an oversubscribed $48 million in October, vowing to increase its Bitcoin holdings to $1 billion within five years. Now, it is shifting its focus entirely to its nutritional supplement brand IM8.

Prenetics currently holds 510 Bitcoins (worth approximately $45 million) and over $70 million in cash. These Bitcoins are held as reserve assets, but the company has committed not to use any funds to acquire more. This sudden change comes against the backdrop of Bitcoin retreating from its October high of about $114,000 to around $88,000, resulting in a 3.5% single-day stock price drop and being viewed as the first significant “retreat” signal from a star company since MicroStrategy sparked a corporate Bitcoin buying wave, prompting market reflection on the sustainability of the “digital asset treasury” model.

Strategic U-turn: The abrupt end of the “Daily 1 Bitcoin” plan

Just a few months ago, Prenetics was seen as a bold pioneer pushing the “corporate Bitcoin strategy” to new heights. This Hong Kong-based genetic testing and health science company, under the halo of football icon David Beckham, announced in June 2025 its entry into the Bitcoin space with much fanfare. Its initial moves were swift and decisive: using the custody service of mainstream CEX Kraken, it purchased 187.42 Bitcoins at an average price of $106,712 each. To demonstrate commitment, the company even invited former OKX COO Andy Cheung to join the board and hired Kraken strategic expert Tracy Hoyos Lopez as an advisor, assembling a team with substantial crypto industry experience.

The real ambition became clear on August 1, 2025. Prenetics launched a long-term treasury accumulation plan called “Daily 1 Bitcoin,” aiming to systematically tilt its assets toward Bitcoin through daily fixed purchases. This strategy quickly drew market attention because it appeared more resolute and long-term than many one-time purchase strategies. By October 27, its Bitcoin holdings reached about 275 BTC, valued at $31 million. To fuel this ambitious plan, the company successfully raised an oversubscribed $48 million in October, explicitly stating the funds would accelerate its Bitcoin strategy. The long-term goal was bold: to increase Bitcoin holdings to $1 billion worth within five years. CEO Danny Yeung expressed strong confidence, envisioning a future deeply tied to Bitcoin appreciation.

However, all this aggressive narrative came to an abrupt halt in early December 2025. The board unanimously approved a resolution to immediately stop the “Daily 1 Bitcoin” purchase plan and pledged not to allocate any existing or new capital to buy additional Bitcoin. The official statement described this shift as a “discipline-based strategic decision from a position of strength,” but the abruptness surprised many observers. Prenetics’ case clearly demonstrates that in the business world—especially for publicly listed companies responsible to shareholders—the strategic anchor is not a fixed belief but a cold calculation of investment returns that can be re-evaluated at any time.

Prenetics Bitcoin Strategy Key Milestones

Strategy Launch Date: June 18, 2025

Initial Purchase: 187.42 BTC at an average of $106,712

“Daily 1 Bitcoin” Plan Start: August 1, 2025

October Holdings: about 275 BTC, worth approx. $31 million

Strategic Financing: October 2025, oversubscribed $48 million

Strategy Halt Date: December 4, 2025

Final Holdings: 510 BTC, worth approx. $45 million (at current market prices)

Public Commitment: No further capital will be used to increase BTC holdings

Behind the shift: The dazzling growth of IM8 and the shadow of Bitcoin volatility

Why did Prenetics’ management make such a dramatic strategic shift within just a few months? The core explanation points to a more “certain” growth story—its subsidiary nutritional supplement brand IM8. According to disclosed data, IM8 achieved $100 million in recurring revenue within just 11 months of launch and is internally praised as “the fastest-growing supplement brand in industry history.” More critically, management expects IM8’s revenue in 2026 to reach between $160 million and $200 million. In contrast, the future value of Bitcoin holdings is fraught with market volatility uncertainty. When the board faced a once-in-a-lifetime growth opportunity in a consumer brand versus a highly volatile alternative asset investment, the scales clearly tipped toward the former.

CEO Danny Yeung’s statement is very representative: “Our board and management team unanimously believe that the most promising way to create significant and sustainable shareholder value is to focus all our undivided attention on IM8, this clear, once-in-a-lifetime opportunity.” This almost implicitly counters the core logic of the “corporate Bitcoin strategy.” Many companies initially allocated Bitcoin as a strategic reserve to hedge against fiat inflation and seek long-term value storage. However, Prenetics’ decision suggests that when a company’s core business experiences explosive growth opportunities, locking capital into volatile assets may be viewed as opportunity cost and distraction.

Of course, external market conditions are an undeniable factor. When Prenetics completed its $48 million financing in October, Bitcoin was still near its high of $114,000. Market sentiment was not euphoric but relatively optimistic. However, in the following months, Bitcoin entered a correction phase, dropping to about $88,000—a decline of roughly 22.8%. This downward pressure likely caused unrealized losses on its Bitcoin holdings (depending on its average cost) and shook management and the board’s confidence in continuing to increase investments in the short term. Persisting with “daily dollar-cost averaging” in a declining market requires strong conviction and resilience against short-term price swings. Clearly, Prenetics’ board chose a more conservative and pragmatic path. This shift also reveals a harsh reality: many listed companies’ “faith” in Bitcoin is subtly and closely correlated with Bitcoin’s price curve.

The retreat of corporate Bitcoin reserves? An interpretation of a landmark shift

Prenetics’ abrupt stop is not an isolated event; it more reflects an emerging trend. Around the same time, ETHZilla, a crypto treasury project supported by well-known investor Peter Thiel, announced it was closing its crypto treasury and selling Ethereum worth $74.5 million, shifting focus to real-world asset tokenization strategies. These companies, once hailed as pioneers of the “digital asset treasury” model, are adjusting course one after another, raising a core question: has the wave of corporate Bitcoin buying initiated by MicroStrategy begun its first significant retreat?

We must understand the inherent fragility of the “digital asset treasury” model. This approach involves replacing part of a company’s balance sheet assets with cryptocurrencies like Bitcoin, relying on key assumptions: 1) long-term crypto appreciation will outweigh short-term volatility; 2) the company’s cash flow is stable enough to withstand valuation fluctuations without operational impact; 3) shareholders and capital markets recognize and reward this aggressive strategy. When markets are bullish, these assumptions are validated, and unrealized gains reinforce the narrative. But once the market cools, all pressure points are exposed. Falling stock prices due to Bitcoin declines, coupled with challenges in core business, exponentially increase board pressure. In Prenetics’ case, IM8’s stellar performance provided a perfect “strategic pivot,” allowing management to gracefully step back from the Bitcoin narrative and focus on a more traditional consumer brand story that is easier for capital markets to understand.

What does this mean for the broader market? First, it may cool the enthusiasm of other companies contemplating similar strategies. CFOs will need to consider more carefully the risks of stock price volatility, regulatory scrutiny, and strategic inflexibility. Second, it highlights that corporate Bitcoin holdings differ from those of pure investment funds or individuals—companies have tangible operations, employees, and quarterly reports, with clear risk boundaries. Lastly, it prompts the market to view MicroStrategy’s case more rationally: as an exception rather than a replicable template. MicroStrategy’s core business (business intelligence software) has stable cash flow, and its CEO Michael Saylor has almost made transforming the company into a “Bitcoin holding company” his ultimate mission. This strong personal will combined with company fundamentals is unique. Prenetics’ exit may mark the transition of corporate Bitcoin reserves from a “trend” to a “filtering” phase—only companies with extremely healthy finances, highly committed management, or deep integration with crypto may continue down this path.

Market reaction: Short-term stock pressure and long-term narrative game

Market responses to sudden strategic shifts are often immediate. After Prenetics announced the halt, its Nasdaq ticker PRE fell 3.5% on the trading day, closing around $15.74. This decline reflects some investors’ disappointment—they initially bought PRE partly attracted by its aggressive Bitcoin strategy’s potential excess returns and narrative appeal. When this eye-catching story is dismantled, the “narrative premium” diminishes accordingly.

However, looking at the longer timeline, the picture is more complex. Despite this dip, Prenetics’ stock price still gained a total of 189% in 2025, far outperforming Bitcoin’s approximate 5.6% decline over the same period (from start to December). An interesting comparison is with MicroStrategy’s stock, MSTR, the “king of corporate Bitcoin,” which fell nearly 48% in 2025. This contrast suggests that the main driver behind PRE’s stock surge this year was not Bitcoin appreciation but the market’s revaluation and optimism about IM8’s growth prospects. In other words, the market may have already started valuing Prenetics more as a “consumer health star” than as a “Bitcoin concept stock.”

This divergence in stock performance offers a vivid lesson in “narrative evolution.” During a crypto bull market, narratives linked to Bitcoin often lead to significant valuation increases. But when markets fluctuate or turn, investors quickly reassess fundamentals—companies with solid growth and clear profit paths are supported, while those relying solely on crypto appreciation face revaluation. Prenetics’ management seems to have keenly sensed this shift, choosing to “abandon the virtual for the real.” For investors still holding PRE shares, the key question is whether the IM8 brand can sustain its growth myth and ultimately realize the nearly $200 million revenue target for 2026. The company’s investment story has shifted entirely from a speculative crypto asset script to a more traditional, but also more execution-dependent, consumer brand growth narrative.

Looking ahead: The future of corporate crypto allocations through Prenetics

Prenetics’ strategic shift offers an excellent case to examine how corporate crypto allocations might evolve. In the future, we may see fewer “all-in” aggressive declarations and more diversified, structured strategies. One possibility is that companies will restrict crypto holdings to a “strategic reserve” portion—similar to holding gold—fixed ratios that are not frequently changed and fully separated from core operations. Another approach is to deeply integrate crypto assets with business, such as using blockchain to improve supply chains, issuing loyalty tokens, or participating in DeFi for low-risk yields—allowing crypto to generate synergy rather than merely being a line item on the balance sheet.

Additionally, clearer regulation will be a key variable. Currently, global standards for accounting, taxation, and disclosure of corporate crypto holdings are still evolving. This uncertainty itself deters many traditional companies from entering. Once stable, transparent regulatory frameworks are established, companies may participate more cautiously and systematically rather than aggressively. Prenetics’ case reminds us that, under current regulations, corporate boards have fiduciary duties to shareholders, and any asset allocation causing abnormal stock volatility could trigger accountability. Therefore, future corporate crypto exposure might favor regulated financial products (like spot Bitcoin ETFs) for indirect exposure, balancing asset access with safety, auditability, and accounting clarity. This could be a more realistic and sustainable path for Bitcoin to mainstream institutional assets.

Evolution and current state of the “digital asset treasury” concept

The “digital asset treasury” concept surged during the 2024-2025 bull market. It generally refers to listed or private companies allocating part of their treasury funds (usually cash surplus) into cryptocurrencies like Bitcoin and Ethereum. The pioneer was undoubtedly MicroStrategy, whose continuous purchases since 2020 have made its Bitcoin holdings surpass most countries. Later, giants like Tesla briefly joined, sparking a trend. Advocates of this model believe that in a zero or negative interest rate environment, holding depreciating fiat currency is suboptimal, and Bitcoin’s “digital gold” properties make it an ideal hedge against inflation and currency devaluation.

However, as Prenetics and ETHZilla’s cases show, this model faces severe challenges. Besides market volatility risks, issues include: 1) accounting and tax complexities—different jurisdictions treat crypto as intangible or financial assets, with complex impairment and capital gains calculations; 2) custody and security risks—enterprise-grade custody solutions are costly, and loss of private keys or hacking can be devastating; 3) corporate governance pressure—stock prices tightly linked to Bitcoin can lead to shareholder lawsuits accusing management of high-risk speculation. The current trend indicates that pure “accumulation” style “digital asset treasuries” are retreating, replaced by more business-related or regulated, compliant allocations. This marks a shift from speculative frenzy to a more rational, constructive phase.