- Acurx Pharmaceuticals to invest $1M in bitcoin, citing its inflation-resistant and value-store qualities.
- Biotech firms like Hoth and Enlivex join Acurx in adopting bitcoin as a treasury reserve strategy.
- Institutional backing and bitcoin ETF approvals drive corporate adoption of cryptocurrency as a financial asset.
Acurx Pharmaceuticals announced on Wednesday that its board of directors has given the green light to buy up to $1 million in bitcoin. The company plans to maintain the cryptocurrency as part of its treasury reserve asset. The news led to fluctuations in Acurx’s stock, with an initial 8% increase during premarket trading followed by a more than 6% drop.
David P. Luci, Acurx Pharmaceuticals’ CEO, explained the decision in a press statement. He emphasized bitcoin’s increasing popularity and recognition as a key asset class. He claimed that bitcoin’s restricted quantity and inflation immunity make it a useful store of value.
The new approach is primarily concerned with finances and has no bearing on the company’s drug development goals. The new strategy focuses on finance and does not affect the company’s drug development plans.
Bitcoin Gains Traction Among Corporates
Hoth Therapeutics, a biopharmaceutical company, has also approved up to $1 million in bitcoin purchases. CEO Robb Kine highlighted how institutional investors now accept bitcoin and how regulations have recently improved. He emphasized that bitcoin is a reliable asset for treasury operations.
Enlivex Therapeutics followed a similar path, adding bitcoin to its financial strategy. The firm mentioned the cryptocurrency’s growing appeal and institutional backing as key factors.
This method mirrors the one introduced by MicroStrategy, a business intelligence firm. MicroStrategy designated bitcoin as its primary reserve asset in 2020. The company now owns a total of 331,200 Bitcoins after expanding its portfolio. MicroStrategy’s stock has soared over 500% this year mostly driven by the unprecedented trading volumes of bitcoin.
Broader Implications for Bitcoin
The use of Bitcoin as a corporate treasury asset is still growing, although it is still happening gradually. Analysts predict that adoption rates will increase as President-elect Donald Trump creates a more crypto-friendly regulatory environment.
Institutional interest has also broadened to the government level. Senator Cynthia Lummis proposed a national bitcoin reserve, while Trump hinted at a potential federal reserve. With bitcoin ETFs gaining approval and increasing corporate adoption, investors are watching for the next major players to join this trend.
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