NASDAQ-listed biopharmaceutical agency Atai Life Sciences says cryptocurrencies like Bitcoin could possibly be key to survival for biotech startups as they wade by years of regulatory approvals.
Atai, which is creating psychological well being remedies utilizing psychedelics like DMT and MDMA, has change into the newest public firm to announce plans to purchase Bitcoin.
It plans to purchase $5 million of Bitcoin (BTC), its founder and chair Christian Angermayer wrote in a March 20 Substack put up.
“Drug growth is a cash-hungry, long-term enterprise,” he stated. “The required steps to realize regulatory approval can simply take greater than a decade.”
TechCrunch reported in January that, in response to a number of knowledge units, the variety of startups shutting down rose in 2024 in comparison with 2023 as corporations did not obtain extra funding to maintain working.
Angermayer stated the approval course of is important for drug growth, however it exposes corporations to monetary dangers whereas sticky inflation and excessive rates of interest have brought on the present “biotech winter.”
Supply: Christian Angermayer
He added that the present business method is to place money reserves in near-zero-yield accounts, as “preserving capital was extra vital than incomes a return on their money steadiness.”
“This context units the stage for contemplating unconventional treasury strikes — like including Bitcoin to the treasury — to deal with the dual threats of inflation and low-yielding reserves, and typically to optimize and maximize shareholder worth.”
Atai will be a part of at the least 5 different public medical corporations which have bought Bitcoin in current months with the purpose of boosting shareholder returns.
Biotech agency Quantum BioPharma said on March 20 that it had now spent $3.5 million in complete to purchase BTC and different cryptocurrencies after an preliminary $1 million funding in December.
Medical system maker Semler Scientific said last month that because it began in Might, it had spent a complete of $280.4 million shopping for 3,192 BTC.
Hoth Therapeutics, Acurx Prescription drugs and Enlivex Therapeutics stated in separate statements on Nov. 20 that every of them would purchase $1 million in Bitcoin.
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Atai’s Angermayer stated his agency’s Bitcoin purchase would primarily be as a long-term inflation hedge but additionally a short-term diversification play. He added that Bitcoin is more likely to have short-term value fluctuations, so the Berlin-based agency is holding largely US {dollars}, short-term securities, and shares for its desired run fee into 2027.
Atai’s $5 million put would imply it is ready to purchase simply over 59 BTC at its present value of round $84,300 and make it the world’s 52nd largest holder amongst public corporations, in response to Bitbo data.
Bitcoin has struggled to keep afloat amid a wider market rout resulting from US President Donald Trump’s tariff threats and fears of a US recession, which Trump hasn’t dominated out.
Atai’s share value rose early in March 20 buying and selling to a peak of $1.47 however tapered off to shut the day down 1.44% at $1.37, according to Google Finance. Its inventory has sunk almost 93% from its mid-2021 public debut peak however is up 3% to this point this 12 months.
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