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, according to 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 Bitcoin (BTC) and other crypto assets will “provide a return on investment for shareholders and […] provide some hedge against the Canadian dollar,” it said.
Shares of Quantum’s stock, QNTM, rose by approximately 25% following the announcement, according to data from Google Finance.
Quantum Biopharma’s stock rose on the announcement. Source: Google Finance
Related: Basel Medical shares down 15% on $1B Bitcoin buying plans
Popular treasury strategy
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 tipped plans to buy $5 million worth of Bitcoin.
In a March 20 X post, 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 blog post that Bitcoin can help the biotech hedge against inflation and stay solvent during the long periods before drug approvals.
Corporate treasuries are now major Bitcoin holders. Source: Bitcointreasuries.net
On May 16, Singapore-based healthcare company Basel Medical Group announced plans 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, according to 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 Assets said in a 2024 report.
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