Anixa Biosciences intends to increase shareholder value and fortify its financial strategy by investing in Bitcoin.
Citing Bitcoin’s “unique inflation-resistant qualities,” the San Jose-based biotech company announced in a press release on November 22 that it will invest a portion of its treasury in the cryptocurrency.
Anixa stated in a news release that the action was authorized by its board and was a component of a larger plan to diversify its cash holdings.
In addition to focusing on progressing clinical trials and shareholder returns, the biotech company highlighted its “strong balance sheet and excess cash,” which enable it to undertake strategic financial initiatives, including diversifying its holdings with Bitcoin.
With Bitcoin’s growing recognition as a mainstream asset class, we believe it represents a valuable addition to our treasury reserve strategy. The approval of Bitcoin ETFs and increasing participation from institutional investors highlight its rising importance in global markets.”
Anixa’s chief executive, Amit Kumar, emphasized the company’s methodical approach to financial management, saying that the Bitcoin allocation is a “additional approach to prudent financial management, enabling greater shareholder value.”
Mike Catelani, president and CFO of Anixa Anixa shares surged 7.84% in pre-market trading after the announcement. Public businesses quickly use Bitcoin as a treasury asset.
The action is in line with an increasing number of publicly traded corporations integrating Bitcoin into their financial plans.
As part of its “Bitcoin-first” strategy, which aims to commit 90% or more of its assets to the cryptocurrency, the artificial intelligence business Genius Group recently announced $4 million in Bitcoin acquisitions, increasing its holdings to 153 BTC.
In order to take advantage of Bitcoin’s potential as an inflation hedge and a store of value that fosters technical innovation, other businesses, such as MicroStrategy and Nasdaq-listed Acurx, have also increased their cryptocurrency holdings.
