Basel Medical Stock Drops on Bitcoin Move
Basel Medical Group shares fell 15% on May 16 following the announcement by the company to purchase $1 billion in Bitcoin for its treasury.
The Singapore-based healthcare provider said it is in sophisticated talks with institutional investors and high-net-worth individuals to fund the purchase through a share-swap agreement.
Strategic Move Strategically Intended for Expansion
Basel said the Bitcoin treasury would allow it to build “one of the strongest balance sheets among Asia-focused healthcare providers.” It also cited greater financial flexibility and ability to withstand market volatility as major benefits.
The shareholders were less hopeful, though. Google Finance information indicated BMGL shares declined approximately 15% in intraday trading.
Bitcoin to Fuel M&A Activity
Basel acquired Bethesda Medical in April, the first in its Singapore and Southeast Asia expansion strategy.
CEO Darren Chhoa said the crypto-backed strategy would “allow us to respond promptly to strategic opportunities” as the firm expands its healthcare platform into high-growth markets.
Skepticism Over Corporate Bitcoin Treasuries
Basel is not alone in bearing the brunt of market reaction. GameStop lost nearly $3 billion of market capitalization earlier this year when it confessed to its Bitcoin plan.
Some investors see Bitcoin as a hedge against macroeconomic stability, but others take a more conservative approach. Corporate treasuries currently hold around $80 billion of Bitcoin, estimates BitcoinTreasuries.NET.
Fidelity Digital Assets argues that Bitcoin might serve as a sound hedge against dangers like fiscal deficits and currency debasement. Yet investor sentiment remains unclear—especially in legacy sectors like healthcare.
