The Wyoming-incorporated tech firm confirms prioritizing Ethereum over Bitcoin treasury, citing ETH potential as a financial instrument.
In a Wednesday statement, BioNexus Gene Lab Corporation confirmed the formal approval to establish an Ethereum-focused treasury. The decision makes it the first Nasdaq-listed entity to prioritize ETH as its strategic asset exclusively.
BioNexus Adopts Ethereum Treasury
The Wyoming-based tech firm issued the Ethereum Strategy Whitepaper alongside the March 5 announcement outlining the rationale of prioritizing ETH over the common Bitcoin treasury. The firm noted that though Bitcoin offers a strong store of value, Ethereum yields broader utility given its programmable financial platform.
BioNexus hailed Ethereum, given its yield-generation capabilities to holders via staking, as a core advantage over Bitcoin. Nonetheless, the tech firm recognized the increased adoption by institutional investors in 2024.
Unlike BTC, the Whitepaper highlights that ETH offers an additional earning stream via staking. Notably, the proof-of-stake (POS) mechanism facilitates the asset holders to earn a 3-5% annual yield. This earnings differentiates Ethereum from other passive assets, confirming its status as an income-generating treasury instrument.
BioNexus cited the institutional credibility of Ethereum following its adoption by leading financial entities, including Fidelity and BlackRock. The institutional uptake validates Ethereum’s long-term potential and utility as a financial instrument.
BioNexus’ chief executive Sam Tan reiterated the tech firm’s goal of strategically positioning Ethereum as a core constituent of its treasury over time. Following the board’s approval, the executive issued a bold outlook to pursue its intention to allocate a substantial portion of its reserves to Ethereum.
Readiness for Ethereum Treasury
Tan was noncommittal on the percentage amount the firm will allocate towards the Ethereum treasury. The executive indicated that while the team is well prepared for the eventual shift, the exact percentage towards Ethereum treasury is unknown.
Tan disclosed ongoing discussions on whether BioNexus will start operating its validator nodes or team up with the established third-party staking providers. He considers the choice hinges on compliance, efficiency, and security, though he expressed optimism as the firm scales its Ethereum holdings.
BioNexus further states Ethereum’s critical role in the global financial ecosystem, arguing it underpins trillion-dollar value in stablecoin transactions executed annually. Notably, the network presents the settlement layer for the global largest stablecoins Tether (USDT) and USD Coin (USDC).
The Whitepaper by BioNexus references the Pectra protocol upgrade as capable of reinforcing Ethereum’s stature beyond the altcoin leader. The upgrade will transform the Ethereum network into a reliable long-term business infrastructure.
Challenges Ahead
Despite the optimism portrayed by the Whitepaper, Pectra’s upgrade has suffered multiple issues during the Sepolia test run. The Wednesday challenges mirror roadblocks witnessed during the Holsky testing phase.
BioNexus has primary operations in Asia via the Malaysian subsidiary, which undertakes genomic diagnostics alongside chemical distribution. The industrial chemical supplies targeting the aerospace and automotive sectors yield 90% of the firm’s revenue.
BioNExus has recently unveiled RNA-based blood testing to help detect inflammatory and cancer diseases early. This segment accounts for 10% of the firm’s total earnings.
Despite the prospects with Ethereum treasury, the Tan-led firm is battling financial challenges. The Nasdaq served notice to the firm in December 2024 alleging non-compliance with the rule to maintain a minimum $1 bid price. The parties reached a temporary exception granting a May 1 date to regain compliance. The firm intends to reverse a previous stock split decision by April 7 this year.
Scrutiny into its earning call shows BioNexus attained $9.26M in twelve-month revenue with its market cap at $5.88 million. The Nasdaq-listed firm under ticker BGLC is 4.37% up, elevating its stock price to 0.3416. The slight improvement in stock price is insufficient to reverse its 1-year decline of 59%, MarketWatch data shows.
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