Kategorie: Bitcoin News

• Prenetics halts new Bitcoin purchases after recent crypto market volatility.
• The company is prioritising the growth of its IM8 supplements brand.
• Prenetics currently holds 510 BTC and over $70 million in cash reserves.

Prenetics Global, a consumer health and supplements company backed by football icon David Beckham, has reversed its short-lived plan to build a Bitcoin treasury, opting instead to focus its capital on expanding its flagship nutrition brand, IM8.

In a statement issued on Tuesday, the Nasdaq-listed firm confirmed that it will no longer pursue additional Bitcoin purchases, signalling a shift away from digital assets amid volatile market conditions.

The company’s management stated that the redirection of resources is aimed at accelerating growth in IM8, which the company describes as one of the fastest-scaling supplement brands in the global wellness sector.

Notably, the decision comes less than three months after the company raised $48 million in fresh equity financing that was raised for cryptocurrency accumulation as a strategic objective.

Strategic pivot after crypto market volatility

When Prenetics announced its equity raise in October, Bitcoin was trading near historic highs, hovering above $110,000.

Since then, prices have dropped significantly, reflecting broader instability across digital asset markets driven by tightening financial conditions, regulatory uncertainty, and reduced institutional risk appetite.

As of this week, Bitcoin has fallen to the high-$80,000 range, underscoring the challenges companies face when managing crypto-heavy balance sheets.

Although the fundraising round was intended to support both Bitcoin accumulation and consumer brand expansion, Prenetics’ leadership now views its health and wellness business as a clearer path to long-term value creation.

The Chief Executive Officer and co-founder, Danny Yeung, said the board unanimously agreed that focusing on IM8 represents a rare growth opportunity that outweighs the potential benefits of further crypto exposure.

However, the company plans to hold on to its crypto assets despite halting new purchases.

Prenetics disclosed that it still holds approximately 510 Bitcoin alongside more than $70 million in cash and cash equivalents, providing flexibility while it reassesses capital allocation priorities.

Part of a broader corporate reassessment of crypto treasuries

Prenetics’ move mirrors a growing trend among publicly listed companies that experimented with cryptocurrency treasury strategies during bullish market cycles.

As crypto prices pull back, several firms are scaling back or abandoning aggressive accumulation plans in favour of more predictable uses of capital.

Earlier this month, Ethereum-focused treasury firm ETHZilla, backed by prominent technology investors like Peter Thiel, announced a pivot away from holding ether toward real-world asset tokenisation initiatives.

Other companies across sectors have similarly turned to share buybacks, debt reduction, or reinvestment in core operations as safer ways to support shareholder value during uncertain market conditions.

Investors in Prenetics’ October funding round included major crypto industry names such as Kraken, Exodus, and GPTX, alongside traditional investment firms.

While their participation highlighted confidence in the company’s innovation strategy, Prenetics’ latest announcement reflects a more cautious and pragmatic stance toward digital assets.

The post David Beckham–backed Prenetics abandons Bitcoin strategy to focus on core health business appeared first on CoinJournal.

• IMF says talks with El Salvador continue, focusing on transparency, public funds protection, and Bitcoin-related risks.
• Negotiations to sell or wind down El Salvador’s Chivo Bitcoin wallet are well advanced under the IMF loan program.
• Despite IMF pressure, El Salvador continues daily Bitcoin purchases while GDP growth is projected near 4%.

The International Monetary Fund (IMF) said discussions with El Salvador over its Bitcoin-related policies remain ongoing, with a focus on improving transparency, protecting public funds, and reducing financial risks.

The update came as part of the IMF’s second review of El Salvador’s 40-month Extended Fund Facility (EFF), under which the country secured a $1.4 billion loan in 2024 after prolonged negotiations strained by its Bitcoin adoption.

According to the IMF, talks are particularly advanced regarding the future of the government-run Chivo Bitcoin wallet, including a potential sale or wind-down of the platform.

Chivo, launched in September 2021 as part of El Salvador’s Bitcoin rollout, has faced widespread criticism since its debut, including allegations of identity theft, fraud, technical failures, and frozen user accounts.

Chivo wallet under negotiation

The IMF confirmed that negotiations for the sale of the Chivo wallet are “well advanced,” marking a significant step in scaling back the government’s direct involvement in Bitcoin infrastructure.

One of the architects of the wallet said last year that the application should be shut down due to the controversy it generated since its launch.

As part of the EFF agreement, El Salvador committed to reducing public sector participation in Bitcoin-related activities.

In March, the IMF formally asked the country to halt Bitcoin accumulation through purchases and mining and to dismantle public structures used to acquire the digital asset.

The fund later said El Salvador has complied with these commitments, including initiating a full phase-out of the Chivo wallet.

Despite these steps, several private-sector Bitcoin wallets are expected to continue operating in the country.

At the time the IMF loan was agreed, Stacy Herbert, director of El Salvador’s National Bitcoin Office, said that while Chivo’s role would change, private wallet providers would continue to serve users.

Bitcoin accumulation remains a point of tension

Bitcoin policy remains a central source of friction between El Salvador and the IMF.

The fund has repeatedly warned that Bitcoin’s price volatility poses risks to public finances and has pushed for limits on government exposure.

Nevertheless, El Salvador continues to report ongoing Bitcoin purchases.

Last month, the country added 1,098 BTC to its national reserves, worth nearly $100 million at the time, according to official disclosures.

Data published by El Salvador’s Bitcoin Office shows that the country holds about 7,509 BTC, with purchases continuing on a daily basis, even during periods of high market volatility.

In May, the IMF reiterated that “efforts will continue” to ensure El Salvador does not accumulate additional Bitcoin.

President Nayib Bukele has publicly rejected the idea of stopping purchases, stating in March that the policy would continue regardless of external pressure.

IMF praises economic performance

While flagging ongoing concerns around Bitcoin, the IMF struck a positive tone on El Salvador’s broader economic performance.

The fund said the economy is expanding faster than expected, with real GDP growth projected to reach around 4% this year and strong prospects for next year.

The IMF also noted that fiscal targets remain on track, foreign reserves are increasing, and domestic borrowing has declined.

Structural reforms have advanced, including new banking stability legislation, the adoption of Basel III standards, and updated anti-money laundering rules.

The IMF said it will maintain close engagement with Salvadoran authorities as it works toward a staff-level agreement to complete the second EFF review, underscoring that Bitcoin-related risks remain under scrutiny even as the country’s macroeconomic outlook improves.

The post IMF advances talks with El Salvador on Bitcoin policy and Chivo wallet future appeared first on CoinJournal.

• Charles Edwards warns Bitcoin could face sharp price pressure if upgrades are delayed.
• Banks are already moving toward post-quantum encryption, increasing Bitcoin’s relative exposure.
• Crypto leaders remain divided on urgency, mitigation strategies, and timelines.

Quantum computing has long hovered on the fringes of crypto risk discussions, often dismissed as a distant or hypothetical challenge. That framing is now being questioned.

New warnings from within the Bitcoin ecosystem suggest the technology may become a practical threat sooner than expected, with implications not just for network security but also for market confidence.

As timelines tighten and views diverge, the debate is shifting from abstract theory to concrete preparedness, raising questions about whether Bitcoin’s current cryptographic foundations are ready for what comes next.

Quantum threat timelines tighten

The core concern around quantum computing lies in its potential ability to break widely used cryptographic systems.

For Bitcoin, this could mean exposing private keys linked to public addresses, allowing attackers to access funds or compromise sensitive data.

Until recently, most discussions placed this risk decades into the future.

That assumption was challenged this week by Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole.

In an X post on Wednesday, Edwards suggested that quantum risk could become critical by 2028.

He argued that if Bitcoin does not become quantum-resistant within that window, the consequences could be severe for both security and price stability.

His comments pointed to a narrower timeline than many in the industry have assumed.

Price risk linked to inaction

Edwards tied the technical challenge directly to market behaviour.

He warned that failure to deploy a solution by 2028 could see Bitcoin trade well below $50,000 and remain under pressure until the issue is resolved.

In his view, the lack of urgency stems from complacency, with meaningful action likely only after a significant market downturn forces the issue.

He has also indicated that any effective quantum patch would need to be rolled out by 2026 to avoid destabilising the network.

Delays beyond that point, he suggested, could trigger a prolonged and deep bear market driven by eroding confidence rather than a single external shock.

Why Bitcoin may be exposed

Sceptics of the quantum threat argue that the technology remains too immature to pose a near-term risk.

They point out that banks, governments, and large institutions would be targeted first, giving Bitcoin ample warning time to adapt.

Edwards disputes this view. He has repeatedly argued that Bitcoin could be an early target precisely because of its design.

Many banks and institutions are already migrating toward post-quantum encryption standards, while Bitcoin continues to rely on existing cryptographic assumptions.

In addition, fraudulent transactions in traditional finance can often be reversed or blocked, whereas Bitcoin transactions are irreversible once confirmed, increasing the potential impact of any breach.

A divided crypto response

Views across the crypto ecosystem remain sharply split on how seriously Bitcoin should treat the quantum threat.

Some participants argue that interim measures already exist to reduce exposure over the next several years, buying time for more comprehensive upgrades to be designed and implemented at the protocol level.

Others dismiss the issue as overstated, maintaining that quantum computing remains too underdeveloped to pose a meaningful risk to Bitcoin’s cryptography.

From this perspective, heightened concern is seen as premature and potentially driven by broader narratives rather than immediate technical realities.

These contrasting positions underline an unresolved tension within the Bitcoin community.

As quantum capabilities progress, the discussion is shifting from whether the threat is real to how quickly Bitcoin needs to adapt to safeguard its long-term security.

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