Bionexusus gene Lab, based in Malaysia, announced on March 5 that it had approved its cash strategy, which prioritizes Ethereum (ETH) on Bitcoin (BTC).
The firm said that the decision was made by Ethereum’s recent inclusion in the American crypto strategic reserve and its “broader utility as a programmable financial platform”.
Bionexus said that the in -depth internal analysis of its board of directors has identified the institutional adoption of Ethereum, the potential for ignition and the domination of financial infrastructure in defics as key factors supporting its integration of the treasury.
As of September 30, 2024, the company’s market capitalization was $ 6 million, its income was $ 2.6 million and its net income was $ 1.3 million. It aims to become the first company listed in Nasdaq to adopt an exclusive Ethereum cash strategy, although it does not stipulate the amount of investment.
Sam Tan, CEO of Bionexus, said:
“Ethereum offers liquidity, public service and high stability compared to other digital assets, positioning BGLC as a leader in business financing integrated into blockchain. Wyoming regulatory leadership also validates our decision, as it promotes an environment where blockchain companies can prosper. »»
Bionexus also cited the regulatory environment adapted to the Wyoming blockchain, highlighting its “Wyoming Stable Token Act”, as an additional factor in its decision.
The Wyoming Stable Token Act, adopted in March 2023, allows the stable Wyoming token commission to deliver stable Wyoming (WYST) tokens, which can be exchanged for American dollars.
Stablecoin stanking and rails
In a white paper Entitled “ETH strategy”, Bionexus argued that Ethereum contrasts with the main use of Bitcoin as a value reserve by offering a participation mechanism which generates an additional 3% to 5% return for companies per year, making it an attractive option for cash management.
The document has highlighted the property of jealking as a key factor in Bionexus’ decision to prioritize ETH for its treasure and stressed The key role of Ethereum in global finance.
He noted that Ethereum acts like the settlement layer for Tether USD (USDT), USD Coin (USDC) and other stablecoins, and deals with billions of dollars in transactions per year.
The report added that this infrastructure allows profitable and effective cross -border payments, positioning Ethereum as a central component of the digital economy.
Financial infrastructure for institutions
The other key differentiators include the role of Ethereum in corporate blockchain solutions, financial institutions and intelligent contract features, while Bitcoin is mainly used as an asset of the Treasury.
Ethereum’s financial solutions mentioned in the white book are the tokenization of financial assets, decentralized payments and better regulatory compliance, strengthening its usefulness in institutional finance.
Consequently, banks, investment companies and listed companies adopt Ethereum more broadly, which indicates dominant financial acceptance. The Company also provides for an acceleration of adoption by corporate companies negotiated on the stock market in Ethereum (ETF).
In addition, the White Paper mentions that the integration of ETH aligns Bionexus on the continuous evolution of business financing, by taking advantage of blockchain technology to improve financial efficiency and liquidity management.
The White Paper expressed its optimism as to the future upgrades of Ethereum, citing the update of the Pectra, which will be posted in April. Pectra will improve portfolio capacities, validator operations, network performance, deployment of intelligent contracts and abstraction of accounts.
