Atai Life Sciences is a biopharmaceutical listed on NASDAQ. It says that cryptocurrencies, like Bitcoin, could be the key to survival of biotech startups navigating through regulatory approvals.
Atai is the latest publicly traded company to announce its intention to purchase Bitcoin. The company develops mental health treatments based on psychedelics such as DMT and MDMA.
Bitcoins worth $5 million will be purchased.BTCChristian Angermayer is the founder and chairman of this organization wrote In a Substack 20 March post.
“Drug development is a cash-hungry, long-term venture,” He said. “The necessary steps to achieve regulatory approval can easily take more than a decade.”
TechCrunch reported According to numerous data sources, in January the number of startup firms that shut down in 2024 was higher than 2023 because they did not get more funding.
The approval process for drugs is vital, according to Angermayer. However, it also exposes companies to financial risk. sticky inflation High interest rates are the cause of current problems. “biotech winter.”
Source: Christian Angermayer
He said that the present industry practice is to keep cash in accounts offering near zero-yield. “preserving capital was more important than earning a return on their cash balance.”
“This context sets the stage for considering unconventional treasury moves — like adding Bitcoin to the treasury — to address the twin threats of inflation and low-yielding reserves, and in general to optimize and maximize shareholder value.”
Atai joins at least five other publicly-funded medical organizations that are undergoing a transformation. bought Bitcoin Recently, there has been a push to increase shareholder returns.
Biotech firm Quantum BioPharma said On March 20, the company announced that after an initial investment of $1 million made in December, it has now spent a total $3.5 million to purchase BTC and other crypto currencies.
Medical device maker Semler Scientific said last month Since May it has spent $280.4 millions on 3,192 BTC.
Hoth TherapeuticsAcurx Pharmaceuticals & Enlivex Therapeutics announced in separate statements On Nov. 20, they each bought $1,000,000 in Bitcoin.
Related: Michael Saylor’s Strategy plans to offer 5M shares to buy more Bitcoin
Angermayer, of Atai, said that his company’s Bitcoin purchase would be a hedge against inflation over the long term but it could also serve as a way to diversify short-term. He said Bitcoin will likely have short-term fluctuations in price, so for the Berlin firm’s desired run rate until 2027, it holds mostly US Dollars, short-term assets, and stocks.
Atai’s 5 million dollars would enable it to acquire just over 59 BTC for its current value of about $84,300, making it the 52nd-largest holder worldwide among public firms. data.
Bitcoin struggled to keep afloat Trump, who hasn’t denied the possibility of a US economic recession, is causing a market meltdown due to his tariffs threats.
Atai shares rose to $1.47 in early March trading, but then fell to $1.37 at the close of the day. according Google Finance. Google Finance. Its stock price has fallen nearly 93% from the peak of its public debut in mid-2020 but it is still up by 3% for this year.
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Source: cointelegraph.com
