BioNexus Gene Lab Corporation has formally approved an Ethereum-focused treasury strategy Wednesday, becoming the first Nasdaq-listed company to exclusively prioritize Ethereum as a strategic asset.
The Wyoming-incorporated tech firm released its Ethereum Strategy Whitepaper alongside the announcement, detailing its rationale behind choosing Ethereum over the more commonly adopted Bitcoin for corporate treasury management.
“While Bitcoin remains a strong store of value, Ethereum provides broader utility as a programmable financial platform,” the firm wrote on its Whitepaper, published Wednesday.
BioNexus touts Ethereum’s yield-generation capabilities through staking as a key advantage over Bitcoin, despite the latter’s adoption by institutional investors last year.
“Unlike Bitcoin, Ethereum provides an additional revenue stream through staking. Ethereum’s Proof-of-Stake mechanism allows holders to generate 3-5% annual yield,” the firm said in its Whitepaper, adding it could potentially turn Ethereum “from a passive asset into an income-generating treasury instrument.”
BioNexus points to Ethereum’s institutional credibility as another factor, noting Ethereum’s adoption by major financial entities such as BlackRock and Fidelity validates “its long-term potential as a financial instrument.”
“Our goal is to strategically position Ethereum as a core component of our treasury over time,” BioNexus CEO Sam Tan told Decrypt in an emailed statement. “I can confirm that our Board’s approval provides flexibility. We intend to allocate a meaningful portion of our reserves to Ethereum.”
Tan declined to disclose an exact percentage for its Ethereum allocation “at this stage,” but said the company’s team has been “preparing for this shift for some time.”
“We’re currently weighing whether to operate our own validator nodes or partner with established third-party staking providers,” Tan said. “Our choice will hinge on security, efficiency, and compliance, and we’ll finalize this as we scale our Ethereum holdings.”
The company also cites Ethereum’s role in the global financial system, claiming the network “underpins trillions in stablecoin transactions annually, acting as the settlement layer for USDT, USDC, and other stablecoins.”
BioNexus’ Ethereum Strategy Whitepaper specifically references the upcoming Pectra protocol upgrade, which it sees as something that could reinforce Ethereum’s stature “as a dependable long-term infrastructure for businesses.”
Despite the optimism, Pectra’s update has faced issues in recent weeks including during its Sepolia test network run early Wednesday, following similar roadblocks from its earlier Holesky testing phase.
BioNexus operates primarily in Asia through its Malaysian subsidiary, working in genomic diagnostics and chemical distribution.
Its provision of industrial chemical supplies for the automotive and aerospace sectors accounts for 90% of its total revenue. It has also developed RNA-based blood tests for early detection of cancers and inflammatory diseases, a segment that represents 10% of its revenue.
But for all its prospects with Ethereum, BioNexus appears to be battling financial challenges of its own.
In December last year, the company received a Nasdaq notice for non-compliance with the minimum $1 bid price rule.
A temporary exception was granted, giving it until May 1, 2025, to regain compliance. To address this, BioNexus plans a reverse stock split by April 7, 2025.
The company reported $9.26 million in trailing twelve-month revenue, over a $5.88 million market cap, with its stock trading at $0.32, down 61% on the year, data from the Financial Times shows.
Edited by Sebastian Sinclair
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